Higher stakeholder scrutiny and the growing demands on today’s boards have triggered an interesting argument: the current board model needs to be revamped, enhanced, or even replaced. The board service provider (BSP) model is an alternative we recently explored at the UCLA School of Law. In the BSP model, the entire board function is outsourced to a third-party organization. While this may seem extreme, thinking about this alternative raises interesting questions about how well-equipped boards are to do their jobs.
What do you think: can the board, or parts of its job, be outsourced? Read the highlights of our recent conference at UCLA and critiques of the book Outsourcing the Board: How Board Service Providers Can Improve Corporate Governance for potential benefits and drawbacks of the BSP model.