We believe that it is imperative that large organisations have high performing and confident Boards. Board act as the custodian of the shareholders’ interests, adhering to accepted governance standards as defined in the market relevant to the shareholders. Boards add value in the strategic development of organisations and enhance overall performance.
The key issues to consider in a Board review are:
- Does the Board comprise the necessary skills/background to support and challenge the CEO and Executive team in terms of industry, geography and function expertise?
- Is the Board working well as a team; are they prepared to be innovative and do they feel equipped to handle the challenges the organisation faces?
- Is the Board large enough to ensure the breadth of expertise required to carry out its responsibilities in a timely fashion and to ensure a broad input to any discussion?
- Are there appropriate subcommittees established to allow for more detailed examination of specific issues?
- Is there sufficient executive representation to ensure fluid communication and partnership with the management team?
We comprehensively review a range of areas that relate to the Board’s operating manner. The overall aim is to assess the effectiveness of the Board, possible impediments and potential improvement drawing on our experience of best practice in other Boards.
A Board Review needs to examine:
- The Board structure and composition
- The operation and effectiveness of the Board
Effective governance requires systematized adherence to defined processes that signal to shareholders and the external environment a strong commitment to governance. A review, therefore, examines the extent and clarity of these processes and the Board’s commitment to them. Having worked with Boards in the UK, US, Europe and Asia we have a sound understanding of the governance issues and regulatory environment in these regions. Our experience of Boards’ operating across multiple regions has given us an appreciation of the cultural concerns facing major international organisations.
The role of the Board is to act as the custodian of the shareholders’ interests, adhering to accepted governance standards as defined in the market relevant to the shareholders. It must add value in the strategic development of the organisation and aim to enhance overall performance. These considerations are paramount in the structure and composition of the Board and we believe that best practice in governance transcends specific market practice and heritage.
The Review involves:
- Input from individual Board members and external parties (e.g. major shareholders) to ensure all pre-agreed issues will be examined.
- Confidential interviews with each Board member. The outcomes will be collated, analysed and presented to both the Chairman and the Board.
- The Chairman determining the level of anonymity, having consulted with the Board.