Board Composition

A good board of directors is essential in any sector, leading the organisation from the front and guiding it towards its strategic goals. When the team works in harmony and individual members complement each other and collaborate successfully, the organisation reaps the benefits.  However, the opposite is also true. Writing in the Financial Times, Novaquest Capital Management chair Gerry Brown states that: “Ineffective boards bring enormous consequences for society. Misperceptions of risk have led many boards, and thus their organisations, into poor decision-making or worse.” So, what makes a good board of directors? This article explores this question and highlights...

Diversity and inclusion have long formed part of companies’ ESG considerations. Businesses understand that many investors and customers are keen to see greater representation across gender, race, ability and other sections of society in organisations. And the business case is strong. Onboarding directors with different backgrounds and perspectives will, of course, introduce fresh ideas and problem-solving skills to the boardroom. In addition, McKinsey found that companies in the top quartile for female representation on boards were 39% more likely to outperform those in the fourth quartile. There was a similar result for those in the top quartile for director ethnic...

Finding the right board composition balance is challenging for organisations, but it is essential in the current climate. As investment firm Abrdn states, “a balanced composition allows it [the board] to adapt to the changing demands of the business environment and ensures that it can fulfil its role in driving sustainable corporate performance.”  Discover 11 actionable steps to guide new board recruits Help fresh directors feel welcome and reach their peak performance with this comprehensive guide. Download guide Businesses in Europe have to be working towards increasing diversity. With the upcoming Women on Boards Directive, every listed company within the...

Consistency is the key for an effective board, and that means getting succession planning right. You need to know you have the right directors ready to come in and hit the ground running when a previous board member steps down. Furthermore, when you look to expand your board, having a candidate who has the necessary skills and experience to drive your board forwards is essential. The step of the recruitment process that truly helps you understand whether someone will be a good fit is interviews. And asking the right board member interview questions will allow you a clear understanding of...

The process of onboarding new directors at an organisation must be handled in the correct manner to help them hit the ground running. From knowing how to announce new board members to welcoming them at their first meetings and supporting them from there, you want to minimise disruption and get them doing what they were appointed to do as quickly as possible.    Discussing the process of welcoming new board members, Didier Cossin of the Institute for Management Development (IMD) Global Board Center said that effective onboarding “facilitates the smooth operation of the board and its evolution. The process is highly...

Company directors hold a great deal of responsibility in a modern organisation. They make decisions on the strategic future of the company, using independent judgement to continually challenge the status quo.  In addition, Financier Worldwide reports that “since the financial crisis, the risk oversight responsibilities and associated liabilities of European directors have been increasing”.  So, what makes a good company director in today’s corporate world?  The company looks to its board of directors to bring skills, expertise and experience to the table that it is otherwise lacking. This article explores ten key facets that every board director should display in...