US electronic stock market Nasdaq is launching an online service, called Board Recruiting, that aims to help public and private companies find prospective board members.
Board Recruiting is a profile matching system that connects potential board member candidates with companies seeking directors. Candidates and boards will be matched once mutual interest has been established.
Bruce Aust, EVP at Nasdaq's corporate client group, says Board Recruiting was created to meet an increased need on the part of both public and private companies to find qualified directors.
"With term limits, fewer multiple directorships, and the move toward increased independence, sourcing candidates has become more difficult," says Aust. "We are filling a need our customers have communicated to us, and we are creating a broader pool of high quality candidates that has not been available in this format before."
In a statement David Smith, president of the Society of Corporate Secretaries and Governance Professionals, says the service will greatly enhance the traditional board recruitment process, which is often done by word of mouth: "Individuals with special skills and talents who might not normally have been sourced can be matched with companies requiring those skills to support their corporate strategy."
The service will operate with a subscription model, with contingency fees upon successful placement of a director candidate.