In recent years, investors have been focusing on the importance of board directors. The board is comprised of individuals who bring their own special skills, knowledge and networks to the table. However, the primary objective of a good board is to work as a team to monitor the performance of the company and help the CEO.
To achieve that goal, a board must be organized to be efficient and well-equipped to serve its function. This is often accomplished by forming a strong team that is able to find the truth, and act as a sounding board that is critical.
It is generally recommended that boards include a mix of experienced and first-time directors to ensure a balanced mix of perspectives and experience. To achieve this, it’s crucial to have an objective framework that allows the nominating committee as well as the board to assess the qualities, skills and talents required to be an ideal director candidate.
A matrix of the character traits of board members is an effective tool that can be used to guide the selection process. It is crucial to remember that the mere fact that one has certain traits, does not mean that they https://boardmanagementsystem.info/board-composition-and-executive-control-of-the-company/ are the ideal candidate for the position.
A specific kind of obstacle to changes in board composition is common in organizations that are dominated by one or more of the founders who believe they know best and are unwilling to risk change. This can result in a «founders’ syndrome» where nominating committees fail to recognize the need for fresh talent and a change in board composition.