MJBizMag July 2021 - 68

Building
theBoard
of the company they will serve as well as
the broader cannabis industry.
Marijuana businesses typically seek
board members with experience in
financial reporting, retail and branding,
testing and product safety or fundraising
and capital formation, Bernard said.
" It's obviously a very select group of
people that we're targeting, " she said.
" Most of the time, it's more of a proactive
outreach to these candidates versus
placing an ad and hoping people will
apply for it. "
WHERE TO START
New York-based hiring agency
ForceBrands also helps consumeroriented
marijuana companies find board
directors and advisers. The agency works
with businesses to understand their
growth plans and recruits executives from
adjacent industries such as food, beverage
and beauty product retailers.
Before ForceBrands starts searching
for board candidates, the agency assesses
its clients' business and culture, said Sean
Conner, co-founder and chief progress
officer at ForceBrands.
" What you really want to think about
is: Who are the people that are going to
help me get to these next five milestones
over the next three to five years? " Conner
said. " It's not just the name, it's someone
that you can actually feel comfortable
picking up the phone and having direct
access to because they really care about
the brand and the business that you're
looking to build and structure. "
Once companies identify their
business goals-such as growing sales or
launching new products-they can seek
directors with the relevant experience to
help reach those targets, he said. Business
leaders said they also keep in mind what
needs they have on their current working
groups and board committees, including
those covering auditing and corporate
governance.
IDENTIFYING CANDIDATES
In February, Agrify announced that Stuart
Wilcox, the former chief operating officer
68 MJBizMagazine | July 2021
of multistate operator Curaleaf, joined
its board. Agrify, a Massachusetts-based
purveyor of grow solutions, wanted
someone who could help explain the
" customer pain points " that cannabis
businesses experience, said Raymond
Chang, CEO and chair of Agrify.
Chang met Wilcox at MJBizCon in
2019. After Wilcox left Curaleaf, also
headquartered in Massachusetts, in
September 2020, Chang floated the idea
that he take a seat on Agrify's board
and persuaded him over three or four
months. In all, Agrify's board comprises
seven directors, including Wilcox and
Chang. The company also has a two-person
advisory board that offers guidance.
" With every single one of my directors,
I always try to get to know the person
on a personal basis first, " Chang said.
" Once I confirm it is the right fit, then I
approach them (about joining), and it's
a pretty easy conversation because we
already know each other on a personal
level and understand that this would be
a very complementary and comfortable
working relationship. "
Regardless of the personal
relationships, Chang said he encourages
his directors to feel free to " say anything "
and " be completely transparent and
honest " with their thoughts about his
performance and the company.
Business leaders frequently fill
board seats with friends or colleagues,
but working with recruiting agencies
gives them access to a wider pool of
professionals, Bernard said.
Liesl
Bernard
As the cannabis industry matures,
companies are finding it easier to
add talented board members from
adjacent industries. Recruitment can
range from leveraging professional
networks to hiring an agency to
cast a wider net. Here are some
considerations for firms building out
their corporate boards:
* Understand the next milestones
you want your business to achieve
and seek out candidates who can
provide the insight to help reach
those goals.
* Develop a process to ensure that
potential board members would
be a good fit, including selecting
candidates you are familiar with,
conducting interviews with multiple
leaders on your team or using
personality assessments.
* Perform due diligence such
as soliciting feedback from a
candidate's references as well as
those in your network who might
know the person.
* Consider how you plan to
compensate board members.
Assign a committee to oversee
compensation, including a review of
how similarly sized companies pay
their boards.
" Part of the maturing process within
the cannabis industry is for companies
to say, 'We're willing to step outside of
our personal network because we know
this is what's best for the growth of
our company, our profile and investor
confidence,' " she said.
FINDING THE RIGHT FIT
Recruiting firms can utilize interviews
and personality assessments to ensure
they are finding directors who round
out their boards. One such assessment is
the Motivational Appraisal of Personal
Potential Assessment (MAPP), which
screens for talents, interests and
motivations.
Schwazze added three new board
members during the first quarter of
2021 to help oversee the Denver-based,
MJBizMag July 2021

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