Most boards don’t reach their fullest potential for effective governance. In fact, many may suffer from panel dysfunctions that might not be fully apparent.
Here’s how to transform your committee into a powerhouse.
A recent Spencer Stuart report confirms that Board composition is at the heart of board effectiveness.
Successful panels are made up of:
1.) directors who reflect the strategic priorities and challenges of the business
2.) the relevant areas of risk, and
3.) the diversity of stakeholders.
Independent voices within the boardroom
We see a wide variance in the representation of independent directors on boards around the world, from just 39% in Brazil to 87% in Switzerland. Many governance codes recommend that a minimum of 50% of board members should be independent of management and shareholders, with no conflict of interest.