®
my board
Shivan Subramaniam ensures that FM Global’s
board members are vested in business resilience
Ed. Note: Shivan S. Subramaniam is chair-
man and CEO of FM Global, one of the
world’s largest commercial property insur-
ance companies. Headquartered in John-
ston, R.I., the Fortune 1000 company insures
$7 trillion in business property worldwide,
and has been named “Best Property Insurer
in the World” by Euromoney magazine. He
has served in his current position since
the 1999 merger that formed FM Global.
He began his career as an industrial engi-
neer with Midland Container Corp. in 1972
and two years later entered the insurance
business with Allendale Insurance Co., pre-
decessor to FM Global. He is a director of
Citizen’s Financial Group and Lifespan Corp.
The American India Foundation honored him
in 2008 for leading the way in corporate and
philanthropic leadership in the U.S., India
and globally.
A t FM Global, the starting point for insur-
ing business property and the business
relationship with our clients is our shared
belief that the majority of business disrup-
tions — from events like fires, natural disas-
ters and other events — are preventable,
not inevitable. Property protection and help-
ing clients reduce the likelihood and sever-
ity of losses is the centerpiece of our value
proposition.
As a mutual company, owned by its cli-
ents who represent one-third of the Fortune
1000, that approach has resonated with our
policyholders for nearly two centuries and
shaped the quality of our board of direc-
tors.
Our board members share a common
purpose as they represent the interests of
our nearly 2,000 client-owners because they,
like our policyholders, are committed to the
protection and maintenance of their prop-
erty to ensure their business continuity and
resiliency. As such, FM Global provides their
organizations with comprehensive commer-
cial and industrial property insurance as
well as loss prevention research and engi- holder company, they must step down from
neering-based risk management services. our board. Because our board members are
At FM Global, we apply well-honed cri- vested in business resilience and keenly
teria in selecting board members and we aware of business interruption risk facing
benefit from a unique governance policy their enterprises, they have a strong affinity
that brings us access to and connection with their
extraordinary people from colleagues from client
a diverse pool of our client companies.
companies. First and foremost,
Ensuring diversity in the our board accepts the
composition of our board is a role of making strategic
key consideration. There are decisions that benefit the
many dimensions to diversi- existing client base, given
ty beyond broad measures that FM Global exists to
such as gender and cultural serve our policyholders
background. Industry seg- well and maintain long-
ment, applied expertise, term, purposeful client
and even the relative size relationships. Directors
of a client are all “diversity” help ensure that we con-
considerations for member- tinue to deliver market-
ship on our board. In addi- Shivan Subramaniam: leading products and ser-
tion, geographical diversity We want the board members
is a consideration because to be compatible but totally
vices that resonate with
our clients and meet their
our multinational clients comfortable offering divergent ever-evolving needs on a
often face risk presented by opinions. worldwide basis.
a myriad of property-related Oftentimes the board
hazards wherever their operations are locat- members are elected from FM Global’s
ed. It’s the best way to ensure our board is eight client advisory boards, representing
representative and sharply focused on the major clients and top executives from vari-
mutual benefit of our diverse client base. ous parts of the globe. These groups provide
Current directors represent clients rang- another level of governance and exception-
ing from manufacturing-based companies, ally valuable insight about the risks and
such as Glaxo-SmithKline, MeadWestvaco challenges their organizations are facing in
Corp. and Emerson Electric Co., to well-rec- various regions around the world and what
ognized media/entertainment brands like the FM Global can do to support their risk man-
Walt Disney Co. and Major League Baseball agement efforts. The advisory boards also
(see list). provide an opportunity to identify potential
Given that we are owned by our policy- new candidates when there’s an opening
holders, having a board composed of only on the board of directors. In fact, five of our
client company leaders means we have current board members previously served
unique access to the top talent across our on advisory boards. The advisory board con-
policyholders’ businesses. cept ensures that new directors understand
Our board members also must be senior- FM Global’s business and its unique charac-
level executives at policyholder companies, teristics before they join the board.
rather than retired executives or board The ideal director represents a long-
members only. And, if they leave the policy- tenured client and understands that
FM Global’s focus is on long-term, stable Board of Directors FM Global
operating performance rather than quar-
ter-to-quarter financial results. This criteria
Shivan S. Subramaniam Robert J. O’Toole
leads to longevity on our board. Currently,
Chairman and CEO, FM Global Director and Retired Chairman and CEO,
four of our directors have been on the board
Frank T. Connor A.O. Smith Corp.
for more than a decade. The ability to work
well together is also critical to their effec- Executive Vice President and CFO, John R. Paloian
tiveness. We want them to be compatible Textron Inc. Chief Operating Officer, RR Donnelley
but totally comfortable offering divergent Walter J. Galvin David Pulman
opinions. Vice Chairman, Emerson Electric Co. President, Global Manufacturing and Supply,
Although, as a policyholder-owned com- John A. Luke Jr. GlaxoSmithKline
pany, FM Global has distinct governance Chairman and CEO, MeadWestvaco Corp. Edward J. Rapp
advantages when it comes to board mem- Group President and CFO, Caterpillar Inc.
Jonathan D. Mariner
bership, our goals and criteria for select-
Executive Vice President and CFO, James C. Thyen
ing directors can apply to many companies
Major League Baseball President and CEO,
operating in today’s global landscape.
Gracia C. Martore Kimball International Inc.
Such elements can bring a strong com-
petitive dimension to any board of directors, President and CEO, Gannett Co. Inc. Alfred J. Verrecchia
whether the company is a mutual company Christine M. McCarthy Chairman, Hasbro Inc.
like ours, shareholder-owned like many global Executive Vice President, Corporate Real
corporations, or privately owned and expect- Estate, Sourcing, Alliances and Treasurer
ing to build a board structure in the future. Walt Disney Co.

(P12275) Reprinted from Directors & Boards® Third Quarter 2012

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