Dear Board Doc: How Shall We Meet: In Person? Virtually? Hybrid?

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Q: Our board has elected to hold off on in person meetings but we have heard that other boards are meeting in person. Can you share the practices and protocols of the boards who are meeting in person or in a hybrid manner?  

A: A handful of fund boards have met in person since this summer while many continue to meet  virtually or in hybrid meetings. The pandemic environment is still filled with uncertainty, but what seems certain is most fund boards plan to incorporate virtual meetings into their annual agenda going forward.

Hybrid Meetings: Several boards that had planned to be in person by this fall have instead opted for the hybrid model, allowing members to attend in person or virtually. The reviews have been mixed. Some boards have found that managing the technology can be challenging at times and ensuring that the directors on screen are fully engaged and included can mean additional effort for those in the room. Despite the challenges of hybrid meetings, some boards are comfortable with the setup while other boards take the approach that even if just one director is not comfortable with in-person meetings then the entire board will meet virtually.

In-Person Meetings: For boards who have met in person, safety precautions have been a focus. These boards limit the number of people in the room as much as possible, allowing service provider and adviser staff to dial in when possible.  Some boards have decided to jettison the board dinner altogether and to serve boxed lunches. Finding a meeting location when the adviser’s offices are unavailable has created challenges, and some boards are experimenting with alternative locations such as hotel facilities or law firm offices.

Virtual Meetings: Boards that continue to meet virtually have learned many lessons over the last eighteen months. For example, they have learned that platforms such as Zoom or Teams are much more effective than telephonic meetings for facilitating interaction. Boards have also learned that shorter, more frequent meetings can result in less screen fatigue. However, some directors have found it more difficult to conduct education sessions for newer directors virtually. Boards meeting virtually also lament the loss of casual interactions and conversations with their fellow directors and adviser staff and the ability to observe the body language of sub-advisers, portfolio managers and other presenters. Some boards have increased virtual interaction using informal coffee and happy hours, additional executive sessions with only the board, and one-on-one check ins among board members.  

Overall, it appears that most boards are adapting and growing more flexible in the current environment and, from time to time, may use hybrid, virtual and in-person meetings as long as the options remain available.