Minnesota’s NorthstarMLS is shaking up its governance structure. In an announcement on Wednesday, the MLS said that its shareholder associations, which include Minneapolis Area Realtors (MAR), the Saint Paul Area Association of Realtors (SPAAR), and the Southeast Minnesota Realtors (SEMR), have made the decision to embrace what they are calling a new, “business-forward governance model.”
NorthstarMLS said this change will position it to anticipate, respond to and chart its course in today’s real estate environment, while also managing risks. The MLS said the change makes it one of the first organizations to adopt a modern governance structure.
“The real estate industry is undergoing a rapid transformation, driven by shifts in broker perspective, a changing business environment and rapid advancements in technology,” Tim Dain, the CEO of NorthstarMLS, said in a statement. “Our priority is to ensure NorthstarMLS moves ahead as a vital asset for the licensed real estate professionals who rely on MLS services. This new governance structure is a proactive, forward-thinking move that will strengthen the organization.”
Under this new model, NorthstarMLS’s board of directors will be reduced from 20 directors to 11 directors, which the firm said will help streamline decision making. Of the 11 directors, six will be recruited and chosen from outside the real estate industry.
“These independent directors will bring subject matter expertise in critically challenging areas such as law, technology, and marketing,” the MLS said in a statement.
The remaining five board members will be licensed real estate professionals who are actively engaged in NorthstarMLS’s service area.
In addition to the board restructuring, NorthstarMLS is also going to establish a “small, nimble executive committee,” which the MLS said will work together to address new opportunities. The MLS added that the new structure requires its outside legal counsel to attend all board and executive committee meetings to address legal concerns.
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