Directors & Boards: Reader Profile

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Reader Profile

Virginia Gambale
Managing Partner
Azimuth Partners LLC

Editor's note: Each month, we ask a Directors & Boards reader to comment on critical issues facing directors today. If you'd like to participate in this section in the future, please email Scott Chase.

You’ve served on more than 20 public and private boards over the last several years. What would you say are the key insights you’ve derived from that experience?

I have two key insights that I believe need to be addressed at the board governance level. Board directors make decisions and provide guidance in the context of the information that is presented. I believe strongly that the issues with corporate governance in America will not be adequately addressed unless there is a fundamental change in the attitude and approach directors take with respect to the information they receive The separation of Board Chair and CEO or the creation of a Lead Director should result in the request of broad and unbiased information by a non-management director and not reliance on management to “lead” the directors to a conclusion based upon the information they have chosen to present. This may require a greater time commitment for the lead director and thus they should be compensated accordingly.

Secondly, a significant amount of Private Equity Capital is going into Leveraged Buyouts of many of our country’s major corporations and Exchanges. At some point the exits will occur and the boards previously dominated by Private Equity financiers must transition back to Independent Directors. Some do and many don’t for quite some time even after these funds have liquidated their positions. Choosing the right time, phasing and selection of Directors for these firms will also involve a carefully thought out strategy. Who is responsible for taking the lead on that?

What “looming issues” do you see in the corporate governance arena in the near future?

A significant portion of the working population will be retiring shortly which will leave a deficit in numbers of resources available. However, this should be used as a time of opportunity to produce clever deployment of technologies and a newly trained labor force to change the corporate structure and operational processes. Additionally, the ever increasing capital investment of technology on a company’s balance sheet needs to be properly allocated and managed. Few know how to do this well, and this expertise needs to be acquired at the board level.

Do you enjoy being a director?

Love it! It is the culmination of the various roles I have played; as a senior corporate executive reporting to the board, an investor driving results and creating shareholder value, and as an independent board director focused on protecting shareholder interests, enhancing customer and employee satisfaction and generating overall shareholder value. I feel much needed reform must take place in the overall corporate governance arena and it is not solely achievable by the creation of regulatory laws, but rather achieved by the proactive contributions and ethical and experienced actions of individual directors.

What advice would you give to an executive considering board service?

Only pursue board service if you are able and willing to work very hard, commit time, are truly driven to enhancing shareholder value, customer experience and employee satisfaction, and have a special affinity for the company. Any other reason is secondary and unimportant.

Virginia Gambale is Managing Partner of Azimuth Partners LLC, which she founded in 2003. Ms. Gambale operates globally, developing growth strategies, business partnerships and executing successful exits for technology and business service companies.

She is highly regarded for her innovative thinking, personal involvement, concern for people and ability to deliver results. Accordingly, Ms. Gambale garnered such prestigious awards as the Forbes Great Communicators (1999) and was named one of the top three CIO’s on Wall Street (1997).

She has served on over 20 Public and Private boards including: JetBlue (NASDAQ-BLU), Motive (NASDAQ-MOTV), Workbrain (TSE-WB), Voxpath, IQ Financial (Chairman) and Synchronoss Technologies (NASDAQ-SNCR). She has often served as Board Chair and Compensation & Transaction Committee Chair.

Ms. Gambale’s work on Advisory Boards is extensive and includes: DB Capital Partners, FT Ventures, Apax Technology Ventures, New York City Investment Fund, Mobius Ventures, Gartner Group & SIM CIO Roundtables, CPM Brazil, MPI Professionals, Knoa Software, Performa Works, Covalent and RWD Executive Search.

Prior to 2003, she held senior management positions (including CIO) at global corporations including: Merrill Lynch, Marsh & McLennan, Bankers Trust Alex. Brown and Deutsche Bank. Additionally, she headed DB Strategic Ventures, where she successfully wound down their investment portfolio. This lead to her appointment as general partner in ABS Ventures where all investments she led resulted in successful IPOs. She was subsequently a partner at DB Capital Partners.

A former senior executive in large multinationals, she has recruited senior level executives and understands how a firm becomes the employer of choice. An advocate of performance management systems and metrics, she is known for her success in employee development and satisfaction.

Ms. Gambale’s memberships include: National Association of Corporate Directors (NACD), Association for Corporate Growth (ACG), Economic Club of New York, Women’s Hi-Tech Coalition and Women on Wall Street. She is a member of the Mentor Faculty and Thesis Evaluation board for Columbia University’s Graduate Masters in Technology Leadership. Ms. Gambale is also an active mentor and financial sponsor for the education of underprivileged minority women at St. Michael’s Academy in New York City.

Ms. Gambale earned a Bachelor of Science degree in Mathematics and Computer Science with a minor in Business from the New York Institute of Technology. She also studied at Julliard and Hartt Conservatories.