This week, Fortune published its annual Modern Board 25 list, recognizing some of the most innovative and diverse boards of directors among S&P 500 companies.
The most effective and impactful boards share a few traits: They’re diverse, they roll up their sleeves to solve problems, they turn disagreements into productive conversations, and they collaborate well across the company’s C-suite.
The top-ranking board this year was at F5, a cybersecurity firm, which has executives from Microsoft, PayPal, HP, and HubSpot on it.
Fortune‘s Leadership and Modern Board writer, Lila MacLellan, details why F5 was the top pick:
Boards must create the right culture to exercise their power effectively. At F5, “humility” fuels the boardroom, and directors leave behind big egos, according to CEO François Locoh-Donou: “They are there to contribute where they can, learn where they can, and most importantly, serve the company.” Serving the company means sometimes being “quite vocal” when the board feels management isn’t doing enough to mitigate risks.
The F5 board’s skepticism, advice, and openness were “absolutely critical” as the company moved away from its history as a hardware player and focused on digital transformation, acquiring five companies (to the tune of $2 billion) in recent years. That took courage from the board, says Locoh-Donou.
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