By Mark Rogers, managing director and head of the Board Practice, Robert Half
Almost every experienced board member has encountered situations in which two or more directors consistently vote together on resolutions, regardless of the merits of the issue. Voting blocs can develop for a variety of reasons: loyalty among certain directors, tension or persistent disagreement with others, shared allegiance to particular shareholders, or even a subset of groupthink. Depending on their size, these blocs can centralize decision-making authority within a subset of the board, marginalize minority viewpoints, and curtail meaningful deliberation ahead of major votes. At best, voting blocs undermine good governance; at worst, they become a rubber stamp for a predetermined agenda. When board decisions can be predicted in advance due to known alliances, the board is no longer functioning as a truly deliberative body.
This article outlines practical steps boards can take to unwind existing voting blocs and prevent them from forming.