Georgia Corporate
Governance Diversity
Report 2014
Tom Furlong
Managing Director
Harvard Group International
Overview
01
table of contents
Overall Board Demographics
02
Board Member Status Metrics
03
Public Companies based
outside ...
3
what is diversity?
This report* is a diversity analysis of the
top 100 (by Market Cap Value) Georgia-
based publicly tra...
4
why is diversity important?
For consumer–facing companies, having a
board that reflects the general population in
gender...
5
methodology for this report
Market Cap Value (MCV) was utilized in
this report since a company’s Board
focus is to look ...
6
overall board size
There are 931 total seats
among the 100 boards.
Board sizes range from 5 to
17 across all MCV groups....
7
female representation
Women hold 11.7% of all
Georgia board seats.
• 7 companies have three
or more female directors
• 2...
8
minority representation
Minorities hold 7.0% of all
Georgia Board seats.
• 25 companies have African
American directors
...
9
industry insiders
Boards with too many (or
too few) industry insiders
can become blind to
outside influences.
Nearly 1/3...
10
activity status
Board Member Status Metrics
section 03
A strong mix of active and
inactive/retired executives
on a boar...
11
location status
Board Member Status Metrics
section 03
A broad geographic reach can
offer differing perspectives that
m...
12
independence status
Board Member Status Metrics
section 03
Board independence is crucial
in gaining the upmost levels o...
13
the “other Georgia”
Public Companies based Outside Metro Atlanta
section 04
Only 17 of the Top 100 MCV
companies are ba...
14
who is on the the list?
The Top 100 Georgia based companies
section 05
Aaron's Coca-Cola Enterprises Haverty Furniture ...
15
who are we?
Harvard Group International (HGI) is an
Atlanta-based executive search firm that has
completed search proje...
Harvard Group International
1640 Powers Ferry Road #25
Marietta, Georgia 30067-1444
p) +1 404.459.9045
w) www.harvardsearc...
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Georgia Corporate Governance Diversity Report 2014 (slidedocs version)

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An overview of Board Director composition for the Top 100 (by Market Cap Value) Georgia-based publicly traded companies. Six criteria are used to understand the true diversity of a board. The 100 companies are reviewed as a group and by Market Cap Value subgroups. This presentation shows the highlights taken from a more detailed text companion piece with the same title (also included on SlideShare).

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Georgia Corporate Governance Diversity Report 2014 (slidedocs version)

  1. 1. Georgia Corporate Governance Diversity Report 2014 Tom Furlong Managing Director Harvard Group International
  2. 2. Overview 01 table of contents Overall Board Demographics 02 Board Member Status Metrics 03 Public Companies based outside Metro Atlanta 04 Top 100 Georgia-based Companies 05 About Harvard Group International and the author 06
  3. 3. 3 what is diversity? This report* is a diversity analysis of the top 100 (by Market Cap Value) Georgia- based publicly traded corporations. Gender and Ethnicity are the most common forms of diversity- but other factors should be considered to determine the “diversity” level of a corporate board. Six Diversity Criteria reviewed for this report: • Gender • Ethnicity • Industry Focus (from inside/outside the companies industrial sector) • Working Status (Employed/Inactive) • Location (In State/Out of State) • Independence (Inside/Independent) Overview section 01 * A more detailed report, including individual company Board analysis, is available by contacting the author
  4. 4. 4 why is diversity important? For consumer–facing companies, having a board that reflects the general population in gender and ethnicity will yield additional insights into a company’s message and market presence. The result: improved advice and guidance for the executive team. Diversity of experience is important in helping to help prevent “group think” among the board. This risk is most glaring when the directors are all from the same industry or other similar backgrounds and experiences. Corporate Governance diversity can also impact the investment community. Socially motivated investment funds might look for boards that reflect the general population; investors might choose to target companies whose board shows a breadth of experience; and having a high level of diversity demonstrates the board’s commitment to look at a larger pool of talent for their members- and would look at a larger pool of talent when making key executive hiring decisions. Overview section 01
  5. 5. 5 methodology for this report Market Cap Value (MCV) was utilized in this report since a company’s Board focus is to look out for the investment of the shareholders. This report looks at the Top 100 companies both as a whole and by MCV size groupings:  MCV greater then $5 billion  MCV between $1 billion and $5 billion  MCV between $250 million and $1 billion  MCV less than $250 million A few other points about this data: • MCV were of January 24, 2014 • Directors were taken from each companies website on February 1. 2014 • Demographic and other status criteria were gathered through exhaustive research of multiple data sources • Changes that may have occurred between the compilation of data and the report’s publication date are not reflected in the commentary or chart data Overview section 01
  6. 6. 6 overall board size There are 931 total seats among the 100 boards. Board sizes range from 5 to 17 across all MCV groups. Average board size is just above 9 directors: • 38 boards > 9 members • 20 boards = 9 members • 42 boards < 9 members Overall Board demographics section 02 Company Board Size Size All Boards > $5B $1B-$5B $250M-$1B <$250M 14+ Directors 8 6 1 0 1 11 to 13 15 8 3 2 2 9 or 10 35 4 12 9 10 5 to 8 42 4 8 12 18 Total 100 22 24 23 31
  7. 7. 7 female representation Women hold 11.7% of all Georgia board seats. • 7 companies have three or more female directors • 23 companies have two women on their boards • 39 companies have one female director • 31 companies have no women on their boards Overall Board demographics section 02 Board Composition by Women All Boards > $5B $1B-$5B $250M- $1B <$250M Women Serving 109 40 28 22 19 Total Board Seats 931 257 223 191 260 % Women Members 11.7% 15.6% 12.6% 11.5% 7.3%
  8. 8. 8 minority representation Minorities hold 7.0% of all Georgia Board seats. • 25 companies have African American directors • 10 companies have Hispanic directors • 9 companies directors of Asian heritage • 9 companies have multiple ethnic group representation Overall Board demographics section 02 Board Members by Ethnicity Group All > $5B $1B-$5B $250M-$1B <$250M African American 44 18 11 5 10 Hispanic 10 5 1 3 1 Asian 11 4 1 4 2 White 866 230 210 179 247 All Board Members 931 257 223 191 260 % of Color 6.98% 10.51% 5.83% 6.28% 5.00%
  9. 9. 9 industry insiders Boards with too many (or too few) industry insiders can become blind to outside influences. Nearly 1/3 (303 out of 931) of board members come from the same industry as the company that they offer governance and guidance. Board Member Status Metrics section 03 Industry Insider Composition Status All > $5B $1B-$5B $250M- $1B <$250M Industry Insiders < 33% 52 16 10 9 17 Industry Insiders 33%-67% 42 5 13 13 11 Industry Insiders > 67% 6 1 1 1 3 Total 100 22 24 23 31
  10. 10. 10 activity status Board Member Status Metrics section 03 A strong mix of active and inactive/retired executives on a board balances current business perspectives with time available for complex board projects. Currently 548 board members are actively employed; the others are either retired, transitioning between roles, or have board service as their principal occupation. Director Status % Active All > $5B $1B-$5B $250M-$1B <$250M # Active > 67% 37 5 8 9 15 # Active 67%-33% 53 15 12 12 14 # Active < 33% 10 2 4 2 2 Total 100 22 24 23 31
  11. 11. 11 location status Board Member Status Metrics section 03 A broad geographic reach can offer differing perspectives that might impact a company’s guidance and operation. Companies in the three top MCV groups have national and global operations: residency diversity might be the most important attribute when evaluating perspective board nominees. Director Residency % Directors All > $5B $1B-$5B $250M-$1B <$250M Georgians > 67% 34 3 9 7 15 Georgians 33%-67% 29 8 10 6 5 Georgians < 33% 37 11 5 10 11 Total 100 22 24 23 31
  12. 12. 12 independence status Board Member Status Metrics section 03 Board independence is crucial in gaining the upmost levels of shareholder confidence- and in providing diversity of insight. For this report, 195 of the 931 board members (20.9%) are considered to be an “insider”- either currently or formerly employed by the company or someone with a familial tie to the company or it’s founder. Board Composition # Board Insider All > $5B $1B-$5B $250M-$1B <$250M Insider > 2 23 6 7 5 5 Insider = 2 27 2 6 5 14 Insider = 1 50 14 11 13 12 Total 100 22 24 23 31
  13. 13. 13 the “other Georgia” Public Companies based Outside Metro Atlanta section 04 Only 17 of the Top 100 MCV companies are based outside the metro Atlanta region. These companies have additional challenges in building diverse boards: smaller talent pools to attract nominees in both location and business experience levels. Corporate HQ Location Location All > $5B $1B-$5B $250M-$1B <$250M Inside Metro Atlanta 83 19 21 20 23 Outside Metro Atlanta 17 3 3 3 8 Total 100 22 24 23 31 % Outside Metro Atlanta 17.0% 13.6% 12.5% 13.0% 25.8%
  14. 14. 14 who is on the the list? The Top 100 Georgia based companies section 05 Aaron's Coca-Cola Enterprises Haverty Furniture Premier Exhibitions Acuity Brands Colony Bankcorp HD Supply Premiere Global Services AdCare Health Systems Concurrent Computer Heritage Financial Group PRGX Global AFC Enterprises (nka Popeyes) Cousins Properties Home Depot Primerica AFLAC Incorporated Crawford & Company Intercontinentalexchange Group Rock-Tenn Company AGCO Corporation Cryolife Interface Rollins Agilysys Cumulus Media InterNAP Network Services RPC AGL Resources Delta Air Lines Invesco Saia Alimera Sciences Dixie Group Manhattan Associates Schweitzer-Mauduit American Software DLH Corp Marine Products SouthCrest Financial Group Ameris Bancorp Earthlink MedAssets Southeastern Bank Financial Arris Group Ebix MiMedx Group Southeastern Banking Asbury Automotive Group Equifax Mohawk Industries Southern Company Atlantic American Corporation Examworks Group Mueller Water Products Southwest Georgia Financial Atlanticus Exide Technologies NCR Corporation State Bank Financial Axiall Fidelity Southern Corporation Neenah Paper Streamline Health Solutions Beazer Homes USA FleetCor Technologies Newell Rubbermaid SunLink Health Systems BlueLinx Flowers Foods Numerex SunTrust Banks Carmike Cinemas GBS Enterprises Ocwen Financial Synovus Financial Carter's Gentiva Health Services Orion HealthCorp Thomasville Bancshares Cbeyond Genuine Parts Company Oxford Industries Total System Services (TSYS) CCF Holding Company Georgia-Carolina Bancshares Perma-Fix Environmental United Community Banks Citi Trends Global Payments Piedmont Office Realty Trust United Parcel Service Citizens Bancshares Graphic Packaging Post Properties Video Display Corporation Coca-Cola Company Gray Television Preferred Apartment Zep, Inc.
  15. 15. 15 who are we? Harvard Group International (HGI) is an Atlanta-based executive search firm that has completed search projects within multiple industries throughout North America. Founded in 1996, HGI exceeds performance metrics of the multi-office and multi-national retained search firms in rate of success (99%+), speed of service, and diversity placement metrics. The HGI team (with over 300 years of search industry experience) attracts best-in-class talent for board roles, C-Suite, senior/junior executive positions, and key individual contributor roles. Tom Furlong is the Managing Director of the HGI’s Energy practice and also works with the Corporate Governance and Food Service/ Hospitality teams. He has successfully helped clients and candidates build their future for over 15 years by leading executive search projects throughout North America and Asia. Tom also draws upon his 13 years of experience at Novartis to understand the inner workings of individual teams that give strength to enterprises of all sizes and scopes. About Harvard Group International and the author section 06
  16. 16. Harvard Group International 1640 Powers Ferry Road #25 Marietta, Georgia 30067-1444 p) +1 404.459.9045 w) www.harvardsearch.com t) @harvardsearch Tom Furlong p) +1 678.214.6065 e) tfurlong@harvardsearch.com t) @TerrellMillTom contact information

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