Board composition has gained considerable attention in recent years as investors focus on the important role board directors play. The board is comprised of people who bring their unique expertise, knowledge and networks to the table. However, the primary goal of any effective board is to work as a team to monitor the performance of https://boardmanagementsystem.info/board-composition-and-executive-control-of-the-company/ the company and assist the CEO.

To accomplish this, boards must be well-equipped and arranged to serve its purpose. It is usually achieved by building a robust team that can find the truth and act as an important sounding board.

It is generally recommended that boards comprise an assortment of experienced and first-time directors to ensure a variety of perspectives and expertise. The key to this is having a clear framework in place that allows nominating committees and the board in general to assess the skills as well as the qualities and talents that are required to make the ideal director candidate.

A popular tool is a board-matrix that includes individual characteristics that assist in the selection of board members. However it is important to remember that just because someone is a keeper of certain traits does not necessarily mean they are the best fit for the role.

In companies that are relatively new there is a particular type of blockage can arise when the founders are dominant. They believe they know best and don’t want to take the risk of changing. This can result in a “founders’ syndrome” where nominating committees fail to recognize the need for fresh ideas and a refresh of board composition.