In recent times, investors have centered on the importance of board directors. Boards are comprised of people who bring their own particular skills, expertise, and networks to the table. However, the primary goal of any effective board is to work together as a team to oversee the performance of the business and support the CEO.
To achieve this goal it is essential that a board be designed to be efficient and well-equipped to serve its purpose. This is often accomplished by building a robust team that is able to find the truth and be an important sounding board.
It is generally recommended that boards have the experience of both experienced and first-time directors to ensure a balance in perspectives and experience. To attain this, it’s important to have a clear framework that allows the nominating committees and the board to assess the qualities, skills and talents required to be the ideal candidate for director positions.
A popular tool is a board-matrix that includes individual characteristics that help to guide the selection of possible board candidates. However, it is important to remember that just because a person has certain traits does not necessarily mean they are the right candidate for the job.
A special kind of blockage to changes in the composition of boards can arise in relatively new companies that are controlled by one or more founding fathers who believe that they are in control and do not want to risk changing. This can lead to a «founders syndrome» in which the nominating committees fail recognize the need for new talent and a fresh board composition.
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