Boards Consider Politically Connected Directors Under New Administration

Governance Professionals Caution Against Knee-Jerk Reactions to Shifting Political Winds

Meta Platforms added Dana White, CEO of UFC and longtime ally of President Donald Trump, to its board this month. The headline-grabbing appointment comes as companies are donating money and setting up face-to-face meetings with Trump to win favor with the new president.

However, sources are torn on the benefits of bringing on board members who are politically connected. On one hand, those with political and government backgrounds can help companies prepare for upcoming regulations and win government contracts. On the other, reactive board picks might not be beneficial in the long run, and people with political connections might not have the business acumen to sit on the board, sources warn.

For nom-gov committees considering bringing on a politically-connected board member, it’s important to consider the holistic attributes of board members and how a pick might be perceived by stakeholders, sources said. In the current political environment, divisiveness and the importance of corporate political connections will likely weigh on board composition decisions, sources said.