In somewhat candid news, Starbucks Corp.’s chief legal officer, Brad Lerman has advised outside counsel to rethink their approach when advising a company’s board. The reason? Brad avers, quite forthrightly, “Boards of directors don’t like lawyers“.
This bold assertion comes from his observation of the mood within boardrooms. Lerman painted a bleak picture of boardroom atmospherics, noting, “I have never seen a room become as depressed and deflated as when the general counsel says, ‘I’ve invited my outside counsel to talk to you.” Such a statement usually signals significant issues, possibly legal disputes, that could negatively impact the company’s operations.
Lerman, who joined Starbucks last year, based his comments not just on his experience at the coffee giant but also his time as a board member at McKesson Corp. His observations raise important questions for those in the legal profession about how to effectively communicate and engage with corporate boards.
Undeniably, for corporate legal teams and external legal consultants, this provides a fresh perspective on potential strategies for interaction and engagement with corporate boards. The key to effective counsel, it seems, is not just having the right legal advice, but delivering it in such a manner that maintains board confidence and morale, rather than deflating it.