A study by the National Association of Corporate Directors found that only 4 percent of board members believed marketing experience was valuable at the board level. Does that make sense when companies want to grow? Do companies grow better with marketing experience on the board?
Researchers analyzed 64,086 board member biographies from Standard & Poor’s 1,500 firms between 2007 and 2012, and found that a firm’s annual revenues can be expected to grow by nearly 6 percentage points when at least one marketer is on the board.
Research papers about the marketers on boards were authored by University of Virginia Darden School of Business Kimberly A. Whitler, Ryan Krause of Texas Christian University Neeley School of Business and Donald R. Lehmann of Columbia Business School.
The researchers attribute the lack of marketers on boards to companies’ reactions to financial reforms of the early 2000s that required corporate boards to have one designated financial expert as a member. After that, the number of finance experts on boards of S&P 500 companies grew 800 percent, while the average board size decreased.