The Alexander Group

Month: October 2024

Rob Perez is a biopharmaceutical operating executive with more than 30 years of experience in the industry. He currently serves as an Operating Partner at General Atlantic, a global growth equity firm, providing strategic support and advice to the firm’s life sciences investment team and portfolio companies. Rob was President and CEO of Cubist Pharmaceuticals, Inc. before its sale to Merck in 2015. Before joining Cubist in 2003, he served as Vice President of Biogen, Inc.’s CNS Business Unit.

Rob is the Founder and Chairman of Life Science Cares, an organization providing human and financial capital from the life sciences industry to the best non-profits working to alleviate the impact of poverty in the US. Life Science Cares now operates in Boston, San Diego, Philadelphia and the San Francisco Bay Area.

Additionally, Rob is the co-founder of Biopharma Leaders of Color (BLOC), a community of leaders united to advance the success and access of under-represented people of color throughout the life sciences industry.

Rob also serves on the Board of Trustees of The Dana Farber Cancer Institute.

In 2022, Rob was selected by STAT News as one of 46 inaugural members of its’ STATUS List, which was described as “the most definitive and consequential accounting of leaders in health, medicine and science.”

We are honored to have Rob contribute to our blog. His two-part series explores the energy it takes to be different in a work setting and how to maintain your authentic self, while also working hard to fit in.

I wrote an article several years ago about the value and benefit of being different.

While I stand by the point of view I expressed at the time, that difference can be a “super power”, my appreciation has grown for how difficult it can be for those who are different than the vast majority of their colleagues in work and social settings.

As I read that blog now, I admit I significantly under-represented the challenges of trying to maintain your authentic self, while also working hard, consciously and unconsciously, to fit in.

By way of example, I recently had an all-too-familiar experience of engaging in a candid and deeply emotional mentorship conversation with a young person of color, who was trying to navigate a work environment very foreign to her. She was working exceptionally hard to try and fit in, and expending a ton of energy doing so. Within minutes of the initiation of our conversation, after communicating to her I recognized how amazing she is (not hyperbole, she REALLY IS amazing) and that her authentic self was extraordinary and worthy of admiration, she was trying to hide her embarrassment because she had broken down into tears for a reason neither she nor I could completely understood.

I was struck by how frequently these emotional (to the point of tears) discussions occur when I work with people who are trying to fit into an environment in which they are different than the vast majority. It reminded me of how often, both now and especially earlier in my career, I have also been on the verge of a surprising break down when I have to summon and sustain the energy to perform in a setting that is unfamiliar and uncomfortable.

As I contemplated this phenomena, it struck me that it might be insightful to explore my own thoughts about the energy that it takes to be different in a work setting. My goal is both to appreciate and recognize the challenges that my diverse colleagues endure on a daily basis, and also to highlight and enhance the awareness and sensitivity of my majority friends, to the very real hurdles that must be overcome by those who are trying to adapt to an environment that isn’t second nature.

I’m often in business and social settings where my ethnicity and socioeconomic and/or academic pedigree are different than most of the people with whom I interact. However, difference can be many things to many people. Race, gender, sexual orientation, socioeconomic background, education, physical appearance, age, introversion/extroversion, physical or mental disability, geography/national origin, or even a perceived lack of happiness and success relative to others who present an over-hyped version of their lives on social media, are all examples of areas in which feelings of difference from the majority can make things complicated in a work or social environment.

Difference is not “in the eye of the beholder”….it is defined and experienced by the person his/herself, and it is never right or wrong. It just…is!

The best way I can describe operating with this feeling of difference is that it is similar to a computer laboriously running at full power just to accomplish a basic task. Customized computers that have been designed since inception to accomplish the task use much less energy and computing power, because they have been wired and programmed to operate in this environment since the day they were built.

Computers with different wiring can still get the job done, but it takes extraordinary CPU energy to do so, because the wiring has additional complexity needed to get the job done. When challenged to perform a task, folks who are different not only have to think about how to deliver on the task, but ALSO have to consider how they are being perceived, how their words and actions will land, whether there are stereotypes or narratives that will disrupt and hijack their message, and try to make adjustments on the fly. They don’t have the benefit of solely focusing on what is needed in the moment, but also have a parallel process running in their head about whether they are performing in a way that is acceptable and consistent with the persona they want to present to their majority colleagues.

This is a good time to take a moment and point out that this “energy tax” exists even in environments where the majority have absolutely no awareness or intention of negative bias or prejudice. The additional energy may even be completely unnecessary (ie everyone WANTS you to feel accepted and comfortable, and would be horrified to know that you are expending additional energy to keep up), but the perceived burden is what it is, and the additional energy discharged to operate effectively occurs as naturally as the blinking of your eyes.

Please visit The Alexander Group blog, Thursday, March 16, for the conclusion of Rob Perez’s blog.

Truda Chow has been named Chief Operating Officer by Frost Brown Todd LLP.

Ms. Chow has extensive experience serving in highly impactful law firm leadership roles, and before joining Frost Brown Todd, she served as Chief Operating Officer for North America for Clyde & Co. and as firmwide Chief Operating Officer for Michael Best.

For more information about Ms. Chow, click here.

This search was conducted and completed by John Lamar and William Lepiesza.

A young manager presenting the graph results on the whiteboard to the board at the conference room.

In our ongoing series covering various aspects of attaining a board seat, we continue with tips on acing the board interview.

First Things First The Initial Interview with the Search Firm

The search firm will be vetting several candidates. Today, almost all board searches have specific functional requirements for which the search firm will look. Gone are the days when companies sought an astute business person who would mesh with the existing board. You will likely be competing with executives with similar talents and experience.

The recruiter will not review your resume in the same manner as if you were interviewing for an operational position within the company. Instead, the recruiter will look for the high points: What were your successes when facing challenges? What was the culture at your organization, and why did you make confident career choices?  What was your reputation at each company where you worked?  Are there explainable career gaps? The recruiter will pay particular attention to your interpersonal style, silently assessing if you would be a good fit and if your experience and skill set would complement the current board.  

The recruiter will also want to discuss your past board experience and pose questions demonstrating your knowledge of a board and how it functions. I have seen many good candidates fall short of the interview by discussing “their desire to help management run the company better.”

We cannot say it too many times: directors do not help manage the company. They represent the interests of shareholders and provide oversight and guidance on issues such as creating and preserving shareholder value, executive compensation, enterprise risk management, CEO succession, and maintaining corporate integrity. 

If you do not have public board experience, do some research. Ask your friends or colleagues who are board members what they were asked by the search committee and would ask of a prospective board candidate. 

The recruiter will also confirm that you have the bandwidth to take on another role, autonomy over your schedule and that your company endorses you joining an outside board. You should have reviewed the board meeting dates for the next two years and confirmed your availability.

Speaking of time, I have two observations:

One red herring that a candidate is not the right fit for a public board is his or her accessibility.  Board-ready executives know how to manage their time and calendar.  Several years ago, while conducting a board search,  an executive was very excited about joining my client’s board but was unable to discuss the opportunity by phone until the following month. My concerns increased after I scheduled a time to fly to Los Angeles to interview her at her office.  Her assistant told me she would have only an hour to meet with me.  Be mindful that if you are considering joining a board, you are excited about, demonstrate that you will invest the time at the front end with the search firm. This will help assure that adding this additional time commitment is the right decision for you and the company. 

Lastly, the recruiter may ask if there is anything that a background check would reveal that could be an issue. Obviously, in addition to criminal records, the recruiter wants to know if you have been the subject of any lawsuits, especially a shareholder suit, and the subject of any SEC or other regulatory proceedings.

Company Interview – What You Need to Know:


1. It may be a lengthy process. Very few boards conduct searches with tight deadlines. Quite the contrary. I’ve conducted searches in which the timeline to complete the search was a year. Because retiring board members give ample notice, or, if a board is adding a new member, it may wish to consider a wide slate of diverse candidates. Additionally, the long process is simply a matter of logistics. Most board members and candidates don’t reside in the same city or where the company is headquartered. During my last board search, we flew the candidates and the nominating and governance committee to New York for candidate interviews. Only one out of the nine individuals lived in New York, but it was the most central and easily accessible location.

Your first meeting with the company could be with one director or the chief executive officer. It will likely be with a group from the company’s Nominating and Governance (N&G) Committee. We have previously written about how to ace a search committee interview; however, there are some twists for the N&G Committee interview, which I discuss in in the following points

2. The basics. Before you don your best suit or dressiest office attire, ask the search firm what the committee will be wearing. You will want to dress accordingly. Some candidates have gone to interviews in their most conservative suit only to find the N&G Committee dressed in khakis and golf shirts. On the other hand, one particularly self-assured candidate wore jeans to the interview and the board members all wore suits. You don’t want to draw attention for over or under dressing. Always ask and match your attire to those with whom you meet.

3. Preparation. In addition to reading the company’s financial documents, analyst reports and regulatory filings, it is critical that you connect with the company’s “product.” Visit the stores, eat the food, etc. Who are you meeting with? What is their tenure on the board?  Take a step back and look at the board as a whole.  Is it a long-tenured board? Is there frequent turnover?  What apparent strengths does each member bring to the board?  What are the company’s long-term plans?  Where could you add value? Time spent reading the MD&A and Management sections in the company’s 10-K, about the directors in its proxy statement, and the responsibilities of directors in the bylaws will be invaluable.

4. Striking the right tone.  As we have said, interviewing for a board position is different from interviewing for an executive role at a company. You do not need to discuss each position you have held throughout your career in granular detail, but give an overview of how you have increased earnings, introduced new products, restructured a company, led global expansions, etc. — how you have added value to the enterprise.

5. Use your time wisely. Assume you will be asked for a five-minute summary of your background. Avoid getting into the weeds. Highlight the strengths you bring to this board seat. For example, if a board is interested in you because of your turnaround experience, spend proportionately more time discussing that than your experience taking companies public. If this would be your first board role, highlight your interaction with the boards of companies with whom you have worked. 


6. Interviewing with a Nominating & Governance Committee.  The primary mistake many candidates make is not giving concise answers. It is also essential to make eye contact with each committee member when answering a question. Not only does it make everyone feel included, but it allows you to assess body language to see if you are talking too much or if there is a lack of interest in what you are saying. Don’t be afraid to say, “Please stop me if my answers are too long or if you want more detail.” 

7. Giving feedback on the company.  One possible question may be, “What is your opinion of our product, stores, strategy, or challenges?”  Your answer will demonstrate how well you have done your homework. If there are weaknesses, you should point them out constructively and tactfully yet balance them with positives.  You will be assessed on how well you can give constructive feedback without being abrasive.  Conversely, some candidates make the mistake of being overly enthusiastic and gushing about a company and offering nothing but compliments.  This can also be a disqualifier, as every company can improve in some area and board members must be able to offer balanced feedback. 

8. Your reasons for being a candidate.  We have addressed the issue of candidates understanding the role of a board member. But what should you not say? Your reasons for serving on a board should not be about you and what the position will add to your resume, career, or pocketbook. One board reported that a candidate wanted to retire in a couple of years and then fill his time with board positions, hoping this would be the first one.  Instead, your motivation should be about how to add value and why the company has the product, challenges, or culture you identify with.

9. Ask questions.  Your questions are as important as your answers. Ask questions demonstrating you understand the issues the board has faced or could in the future. Ask questions that will require answers by more than one board member and could potentially result in a deep discussion. Good candidates should demonstrate knowledge of the business, have critical thinking skills, and be collegial so that the committee leaves thinking, “I could see her on the board. She seems like a good fit.”  

Final thoughts
Remember that the interview is on a two-way street. Regardless of how much you covet that first board seat, the time commitment is too expensive if you feel uncomfortable with or align with the other board members.  

What do Walmart, Berkshire Hathaway, Dell, Comcast, Publix, and Ford have in common? All are among the nation’s largest companies and members of the Fortune 100. Each of them is “family-owned,” which is loosely defined as having two or more family members involved and a majority of ownership or control within the family. Family-owned businesses date back centuries to family farms and, in urban settings, shops, and businesses where the family lived above the premises. In both examples, all family members actively participated in producing the family’s livelihood.

Although many people think of family-owned businesses as making up only a small part of the economy, the following 2021 statistics from Family Business reveal that family-owned businesses:

Employ 23 percent of the US workforce, accounting for 32.6 million jobs;
Generating 23 percent of private-sector GDP or $3.2 trillion; and
Total 9.1 million businesses, representing 25 percent of all business tax returns.
Pressure to Keep it in The Family—Challenges in Hiring Family Members:

The family-business owner, like all business owners, should be concerned about having the best talent in appropriate roles. This can pose a challenge when hiring family members for key positions. Are they the best qualified? It is important to establish hiring and position requirements and uniformly adhere to them when considering family. These guidelines help avoid the pressure to hire a family member only because they are a family member. Many family companies encourage the next generation of family interested in the business to work for another company for several years to gain general business knowledge and experience to be eligible to join the family business.

When family members choose to work for another company in the same industry, they gain added perspective and familiarity with accepted industry-specific best practices. Family members who work outside the family business can gain increased credibility with other family members and the board. Family businesses should communicate hiring criteria for all positions, which not only sets the standard for talent management but can avoid future misunderstandings and conflicts.

The family business owner should ensure that every employee, whether a family member or not, receives the training needed to allow them to function successfully. Placing a family member in a role for which they lack the appropriate skills without a plan to provide the needed training can cause tension, low morale, and family drama. Family member executives must be assessed on their own merits. Each position should have yearly goals so that the family member can be evaluated objectively and without favoritism.

Strategically Hiring Outside The Family:

Hiring nonfamily members, especially doing so for the first time, can be challenging. Many companies decide to hire nonfamily members when the owners want to accelerate the company’s growth. Other companies hire nonfamily members when the company needs specific skills such as legal, international, or financial expertise. The challenge then becomes ensuring that the nonfamily member is a good fit with the organization’s culture and the family itself, especially if the company is small. Marc Sharpe, Chairman of the Family Office Association, reports that individuals who are comfortable with a “servant leadership style” in which one leads by putting the needs of their team first can be an excellent personality fit for a family business.

He adds that while hiring a nonfamily manager is often done to acquire a specific skill set, it is also important to hire individuals who have the flexibility to take on a generalist role when needed. If companies are recruiting nonfamily members for a position to replace a family member, it is important to communicate the reason for the hire and have detailed position requirements. If the company’s management are not in full agreement to hire a nonfamily executive, it will be a difficult and possibly unsuccessful hire.

To avoid and resolve family conflict, it is important in the recruitment and retention of outside candidates to ensure the family business has well-defined business procedures and corporate governance. Also, making decisions informally outside the office will put the nonfamily member at a disadvantage.

Best Practices for Executives Joining a Family Business:

Individuals who work for family businesses agree that it can either be a rewarding or disappointing experience depending on a number of factors, and we recommend that any executive considering joining a family business evaluate the following:

Has the family agreed on the hire?
How well has the position been defined?
How many individuals have previously held the same position? Turnover, particularly in the C-suite, can be a red flag indicating that the family is not ready for a nonfamily executive;
How are business decisions made? Cultural fit may be influenced by whether the business owner makes key decisions independently or in a distributed fashion;
How does the team operate in terms of executing the business? A well-functioning team is empowered to operationalize projects and business imperatives timely and successfully;
Understand the business owner’s goals; recognize these goals may be focused on objectives other than increasing revenue and growth, such as philanthropy or creating a legacy;
Evaluate the strengths and challenges of the current team and look for signs of dysfunction among family members;
Get to know family members individually, because they may have different goals and objectives; what are the family dynamics in play?