In recent years, investors have focused on the importance of board directors. The board is comprised of people who bring their unique expertise, knowledge and networks to the table. However, the aim of every effective board is to work in a team in order to monitor the performance and assist the CEO.
To accomplish that goal it is essential that a board be designed to be efficient and well-equipped for its function. This is often achieved by forming a team that can act as a sounding-board and uncover the truth.
It is generally recommended that boards have an assortment of experienced and first-time directors to ensure a variety of perspectives and knowledge. The most important factor in achieving this is having an objective framework in place that allows nomination committees and the board in general to assess the skills and qualities that make an ideal director candidate.
A common tool is a board matrix that contains individual traits that can help to guide the selection of potential board candidates. It is crucial to remember that just because one has certain traits, does not mean that they are the ideal candidate for the position.
A particular kind of obstruction to changes in board composition can be seen in companies that are controlled by one or more founding fathers who believe that they are in control and are unwilling to risk change. This can lead to a “founders syndrome” where the nominating committees fail recognize the need for fresh talent https://boardmanagementsystem.info/what-is-the-biggest-challenge-facing-the-ceo-of-today and a new board composition.