Can an Agency Exec Sit On a Tech-Startup Board Without Conflict?
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Nearly every week brings news of an ad-tech firm getting ready to go public, and recruiters say ad-agency executives are increasingly eyed as advisers or board members for these high-flying companies. While such a position can offer prestige, insight and career growth, the arrangements can be fraught with potential conflicts.
Late last month, for example, a pre-IPO securities filing for Tremor revealed that Starcom Mediavest Group CEO Laura Desmond was granted hundreds of thousands in options in the video ad-tech startup for sitting on its board. The filing also showed that clients of her agency group provided a large chunk of the ad tech’s revenue. Despite disclosures that Ms. Desmond recuses herself from any business involving both SMG and Tremor, observers decried her role as overly beneficial to her personally.
Ms. Desmond and SMG said they couldn’t comment for this story due to a quiet period at Tremor.
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