Larry King, Co-Founder and Program Committee Chair for the Dallas-Fort Worth Chapter of the Private Directors Association
By Luana Ferreira
Photo credit: Kloo Headshots
In the United States, middle-market companies are responsible for employing 48 million people and also represent 33% of the country's GDP, according to Investopedia. Yet, many companies are still struggling to create efficient and diverse boards that help them grow; Private Directors Association is aiming at that market.
For many years, King worked as a public accountant focused on clients in the middle market. After taking early retirement from public accounting in 2015, he decided to pursue his passion for helping these companies grow. He was determined to help "middle market and lower middle market companies grow, but from a different angle, basically serving as a board or advisory board role. I love working with entrepreneurs. It's just a vibrant space to be in," he says.
A board of directors or advisory board can be a game changer for a company aiming to grow in a world that becomes more complex daily. They are responsible for providing leadership and strategic direction, and also mitigating risks. Larry has served as a board director or advisory board member for public and private l companies, and currently serves on several advisory boards including Amegy Bank Dallas and Kwivik Therapeutics.
In 2019, Larry became a part of the Private Directors Association. This non-for-profit aims to improve private companies' growth and sustainability through governance that adds value. "It started as a local organization in Chicago, and now they've grown to 23 chapters and about 3,000 members nationally. It's grown very rapidly because there's a huge gap in the market," he explains. He currently serves as Programs Committee Chair and Sponsorship Committee Co-Chair for the Dallas-Fort Worth Chapter of PDA.
One of the main challenges faced by the Private Directors Association is the lack of information among business owners on how a corporate board can add value to the company. According to Larry, there have been large organizations addressing the needs of big or public corporate boards, but the Private Directors Association is focused on middle and lower market companies, which are often overlooked. "So, we're filling a space that hasn't been provided for in the past."
Diversity is also crucial on a board as it benefits the company in different areas. "Part of our mission is to educate the owners, and having a diversified board adds value to what they're doing. It is important to have people with different backgrounds and ways of thinking about things. Those were not high priorities maybe five or ten years ago."
The changes don't happen overnight, as the board terms can take up to three years. Still, it is undeniable that companies are investing more in diversity, and the topic is widely discussed. "It's definitely changing the appearance and the dynamics in the boardroom," says Larry.
According to Larry, low and middle-market companies that aim to professionalize their boards should start with a well-defined board matrix and try to fill the gaps. He explains that knowing where the gaps are can help strengthen the board, positively impacting the company's management.
Another change highlighted by Larry is that it is becoming more common to see C-level executives sitting on outside boards other than their own company. The experience can benefit everyone involved, and Larry believes it might become a more standard practice in the future. Seeing how other companies deal with things can be a valuable experience and represents a constant educational process.
A board with the right people can help companies increase their value and face the challenges in a world where things change in a heartbeat. Companies seem to be more aware of it after the pandemic. "I think this is a great time for companies to sort that out. Companies are focusing on finding diverse talent to help with the evolution and needs of the different stakeholders."
As for King himself, he will continue to pursue his passion for helping companies thrive. "I am a learner, always looking for diverse challenges. I want to continue adding value to companies and seeing more generations succeed."
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“Part of our mission is to educate, having a diversified board adds value to companies.”