The Nasdaq Stock Market, Inc. is launching an online service to help public and private companies identify board members.

Nasdaq says that Board Recruiting (www.boardrecruiting.com), is the first online service of its kind and the first board recruitment service to be offered by a stock exchange. It will operate on a subscription model, with contingency fees upon successful placement of a director.

The service is a profile matching system that connects potential board member candidates with boards seeking directors. Candidates and boards will only be matched once mutual interest has been established to ensure that subsequent conversations are relevant and productive. The service was created to provide companies with a more efficient, comprehensive and cost effective way to find board members.

“Board Recruiting was created to meet an increased need on the part of both public and private companies to find qualified directors,” said Bruce Aust, executive vice president Nasdaq’s Corporate Client Group. “With term limits, fewer multiple directorships, and the move toward increased independence, sourcing candidates has become more difficult. We are filling a need our customers have communicated to us, and we are creating a broader pool of high quality candidates that has not been available in this format before.”

“Consistent with Nasdaq’s approach to good corporate governance, we think this service will greatly enhance the traditional board recruitment process, which is often done by word of mouth,” said David Smith, president of the Society of Corporate Secretaries and Governance Professionals. “At The Society we are deeply concerned about board structure and process, and we applaud this innovative initiative that could encourage a better strategic approach to board member selection. Individuals with special skills and talents who might not normally have been sourced can be matched with companies requiring those skills to support their corporate strategy.”