Managing Partner, Korn Ferry
Leadership
Fired from the Government, Heading to the Board?
Directors who join a board from the halls of Washington can provide deep knowledge of regulations and an impressive network to call upon.
March 31, 2025
3 Reasons to Consider Laid-Off Government Officials for Your Board
We’ve seen plenty of corporate leaders decide to run for office: Michael Bloomberg, Meg Whitman, Rick Scott. But in the current era of firings and resignations in Washington, a reverse trend is emerging: An unusually large crop of ex-government officials has become available for corporate-boardroom appointments.
How helpful that can be to boards and their companies isn’t yet known, but many experts say smart companies are definitely weighing their options. For boards in industries that are highly regulated or closely tied to government relations, an ex-cabinet head’s expertise in public affairs, crisis management, or geopolitical risk is highly valuable—especially if they have private-sector credentials as well.
“Combining private sector and senior government experience can be advantageous for the boardroom, particularly if candidates have shown they have an entrepreneurial bent and understand the rules of collective decision-making,” says Kate Shattuck, a Korn Ferry managing partner.
Years ago, company boards with higher numbers of former politicians were associated with better market-based performance. While that may still hold true, experts warn that ex-government officials entering the boardroom face more scrutiny today—despite an absence of restrictions on how quickly they can join a board (such restrictions do exist, however, for civil servants seeking to become lobbyists).
To be sure, with substantial amounts of federal funding at risk these days, it can be tricky to consider government employees for directorships, particularly if sensitivities surround how they left their role. And no board wants to have a compromised bureaucrat or government leader who may present a conflict of interest—say, by accepting a directorship in the same industry in which they formerly served as a regulator.
But considering one analysis found that winning a Senate or gubernatorial election increased the probability of that person later serving on a corporate board by roughly 30%, there’s good reason for boards to be open to appointing high-up ex-civil servants. Here’s why:
Regulatory and Legislative Expertise
Directors who join a board from the halls of Washington can provide a deep knowledge of regulation that can help companies navigate complex compliance issues. For instance, former SEC chair Mary Schapiro joined the board of a large automaker and a big bank—highly regulated industries that can benefit from her insights regarding upcoming policy shifts and risk-mitigation strategies.
Strong Government Relations
For years, companies have sought directors with bipartisan experience, who often have a vast network that extends far beyond the current White House occupant. Today, however, such experience may matter less, with bipartisan agreements becoming increasingly rare. Having an insider who’s clued into the thinking of the current administration could prove more valuable and provide access to decision makers, says Matt Bohn, a senior client partner in Korn Ferry’s technology practice.
Geopolitical Strategy
Understanding how to respond to trade barriers and diplomatic relations—something that’s top of mind for many boards these days—can be crucial for navigating the current volatile macroeconomic environment. “Having someone who understands how capital markets work in Latin America or patent law in China is incredibly valuable,” Bohn says. The trick is to ensure they also possess the business acumen to handle a new area of complexity and build relationships.
For more about how board composition can impact effectiveness, read our latest Board Evaluation Report.
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