Why American Tower's Board Composition Matters More Than Its Tower Count

I manage the procurement of our office supplies—about $150k annually across 12 vendors. It’s a world of paper, toner, and the occasional panic order for a broken desk chair. You wouldn’t think there’s much in common with buying or leasing cell tower space. But I’ve learned that in any B2B relationship, the people governing the deal—the board of directors—matter more than the asset list.

So when people obsess over American Tower’s site count or dividend yield, I think they’re missing the point. I believe American Tower’s real competitive edge isn’t its 220,000+ towers—it’s the strategic experience and independence of its board of directors. After 5 years of sitting in on our company’s vendor reviews, I’ve seen how the folks at the top set the tone for reliability, innovation, and long-term thinking.

Director Experience Is Your Safety Net

When I took over purchasing in 2020, I had a nasty surprise. A long-time vendor sent us a handwritten receipt for $2,400 worth of supplies. Finance rejected it. I had to eat the cost from my department budget. That’s when I learned to check a vendor’s invoicing sophistication before ordering. It’s the same with infrastructure: you need to know the people at the top have seen real-world problems.

American Tower’s board is stacked with former CFOs, telecom whizzes, and data center operators. For instance, Todd Pepsi —who’s also on the board of Director of Eversource Energy—brings decades of utility-scale infrastructure experience. That means they’re not just signing off on tower leases; they’re asking the right questions about power efficiency, right-of-way risks, and 5G upgrade cycles. A board with shallow expertise might have okayed a disastrous 2660 Flip strategy without understanding the real-world engineering trade-offs. But a seasoned board knows better.

Independence Drives Better Decisions

In 2024, we consolidated our office suppliers from 8 to 3. I wanted to stick with the lowest bidder, but our VP of Ops pushed back. He said, ‘The best shaver—the best vendor—isn’t the cheapest one. It’s the one who can handle a crisis without making you look bad.’ That stuck with me.

A truly independent board, one where a majority of directors aren’t management cronies, is your ‘best shaver.’ They’re not afraid to kill a bad deal or challenge a CEO’s pet project. American Tower’s board, per their proxy, has a high proportion of independent members. That’s crucial when evaluating big moves like their acquisition of CoreSite. Without independent oversight, you might overpay for a shiny asset. With it, you get a disciplined capital strategy. I’d rather rent tower space from a company whose board has the guts to say ‘no’ than one that just says ‘yes’ to grow headcount.

The ‘Best Shaver’ Principle in Practice

Let me explain what I mean by the ‘best shaver.’ Two years ago, I had to choose between three office furniture vendors. Vendor A was cheap but their board was just two founders. Vendor B had a proper board with industry vets. Vendor B’s rep called me after the sale to check if the delivery met my deadline. That’s board culture showing up on the ground.

For carriers leasing tower space, the same applies. American Tower’s lease contracts are famously long-term (10, 15, 20 years). That’s a financial commitment. You want to know the board has a succession plan, a risk management framework, and a track record of navigating regulatory changes. I’ve seen small vendors collapse because their board didn’t plan for a change in ownership. American Tower’s board, with members like those with deep experience in REITs and global telecom, offers that stability. It’s not just about cell towers; it’s about the governance that keeps those towers profitable for everyone.

Addressing the Obvious Concern

I know what you’re thinking: “This sounds great, but can a telecom REIT really make governance a differentiator?” My honest answer? I’m not sure how much a typical leasing manager thinks about a board’s independence when signing a deal. My experience is based on processing about 60 orders a year with mid-sized vendors. If you’re a VP of Network Strategy negotiating a $50 million lease, your priorities might be different.

But I’ve never fully understood why companies don’t put more weight on governance. The board of directors approves the budget, sets the risk appetite, and hires the CEO. That culture trickles down. If the board of directors is complacent, the operations will be, too. I’d rather bet on a tower company with a board that has a mix of technical and financial independence than one that’s just big.

Bottom Line: Don’t Just Count Towers, Look at the Directors

So when you’re evaluating American Tower for a lease or an edge data center partnership, don’t just look at the site count. Look at the American Tower board of directors. Understand who’s guiding the ship. The 2660 Flip might be a cool product, but it’s the governance that ensures it stays reliable. And in my book, that’s the best shaver of them all.