Economic and social dynamics, along with advancements in technology, have drastically changed the landscape in the corporate marketplace over the last decade. The changes have greatly impacted the type of leadership that's required for companies to successfully navigate a path forward. Shareholders, institutional investors and regulators have been vocal about the need for corporate boards to move quickly toward transforming their boards to be as diverse as possible. Research indicates that diverse boards outperform boards that lack diversity. Best practices concur with their efforts to motivate boards to make a firm commitment toward composing diverse boards.
Qualified, diverse candidates for board directorships abound if you know where to look for them and you have adequate vacancies on your board when they're available. Making changes in board composition calls for sweeping changes in the structure of the board recruitment and succession planning processes. Today's boards have to evaluate whether it makes sense for retiring CEOs to join their board, re-evaluate age limits and term limits, be open to first-time board directors, be forward-thinking, and make a solid commitment to creating a diverse, capable board of directors.
5 Best Practices for Improving Board Diversity
Consider these five steps that boards and their committees can take to create a more diversified board.-
Look Beyond Sitting and Retired CEOs
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Set Age Limits and Term Limits
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Make Diversity a Top Priority
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Consider First-Time Board Directors
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Compose a Board for the Future
Media Highlights
Environmental, social and governance (ESG) issues have become more complex and multifaceted than ever before. At the same time, ESG continues to ascend on board and leadership agendas.
In this buyer’s guide, we explore what a market-leading ESG solution should look like and highlight the key areas organisations should be prioritising as they embark on their search.