Show S. S Directors 10 lio n Ho Not Direct Athur Warren In Success Maga luga- zine A A great stir str has been leen made Ii In Inthe Inthe the world about dummy dumm directors On One would think this were a new discovery whereas the fact tact Is that thai most directorS directors tors tor are dummies and h have ve ever aver been heen 10 0 Th The majority of them are on their respective boards bec because use the they were wore wonted wanted for Cor other purposes than di- di H The statutes had to be bo complied com coin pJ plied d with wih custom ha had to be honored are useful and votes are arc absolutely absolutely ames Most directors do Tot rot Tot direct direct direct They vote as they thoy arc are told to pass res which are I pr prepared pared and anel laid before them by the theman theman man n-man or men men In control approve the papers they are asked to approve e disapprove those the thc they art ti ar a asked ked to re reject reject re- re listen to reports which have been foiled boiled poled down to the the bone and nn bereft ol 01 detail pocket their foes fees adjourn and a few minutes later attend other other directors directors' meetings for Compan- Compan IP I. I perhaps In the same street or 01 even cven evenin in the same office building Many boards hoards meet only once In three months Thc They have executive e committees com coin es of their members which meet once a n wee week Let us suppose that a n aboard once board Is composed of fourteen or 01 01 frt fifteen fit fit- fr- fr t teen en members or more mort and that the tw contains seven Cx executive committee members or om 01 J less lees ts Very rarely is there thereto Ii to 0 full ul board meeting it is not of often tel teltha that tha a n majority Is present USUal Usually the official has to be drummed Imp up This is true al also o of executive Co committee ni m I t t ec m meetings ecU Th The fhe e d directors rectors I lave have meetings to attend that Ila e so many they can cau not be present at all al of them How then can the they know much about the business which tile they are arc supposed to direct If It I any of their employees knew as little they could not hold their places for fOI a week eek I knew a n persistent old gentleman who spent half hal his life Jfe at timEs this sort of ot thing He lIe le played ed at directing R as an- an oilier man might plC pia play at golf golt He was on the the boards of three fifty three CO companies compan compan- I los ies p and amid some ten executive commit commit- attend nd a was reputed to t tees 8 He was nt thousand le meetings a n year You can can easily figure it up for hu lie was very cl I diligent In attendance He would flit fi from roma rol meeting to me remaining i long enough nt nl each t 10 col collect ct his hi fees tees Uc Re wa was a very well vell known man very rich hl his fees earned him at least a year and as its S J Jit he lived ver tr verY mOth modestly for fOI to so rich an old olt gentleman gentle gentle- man nian sty ho he cou could an and did put oh all al his hil dividends mn Into Inv Investments str ts l How o much did he lie know about the the- affairs of ot th tile the rl fifty threes companies companies' He Joule knew when would Id declare tl dividends arid ami I Is ally al always at- at what hat the rates would be bo That ways nays ly a very profitable knowledge e hol when It U comes conies to you OU In advance lie le Knew eeb ee b before ore each cach event ont when stocks tock and nd ponds bonds would bu be Issued and amid the details de details de- de tails concerning them If I borrowing r i lending was IVUS to be done one he lie know knew i us business to knew of or It I. I It I was ivas his these things He was a professional director But Dut what hl his three fifty O companies leal really doing and anc hoW lion the they were ivere doing It I. I he ht 1 know only onh what hr lit 1 was tras told In brief formal reports rind In imi chats chat with the time chairmen of the i b s Of or course wih ho Iw relied red on then their w 1 Th relied his vot vote They I wo II I 1 They Thoy r on OJ put 01 l things H In to his w why way y he tie put good things In lii theirs thelA |