Independent External Board Evaluations every three years became a key element of the 2010 Governance ‘Code’. Since then, there has been a growing development and focus on the Board as an independent entity. The ‘2010 Code’ stimulated an increased depth of Board effectiveness evaluation across the FTSE 350 and allied companies and organisations who now use the ‘Code’ as a benchmark of governance excellence.
We are seeing more and more discussion, debate and concern about the concept of ‘Overboarding’ in the Boardrooms of our Businesses, Enterprises and Organisations. This is essentially a question of capacity, does the individual sitting on the Board have the ability to effectively contribute to the oversight and strategy of the Business- Enterprise.
It is a good question and an emerging one as the Fund managers, Shareholder Advisors and Compliance Index compilers seek to provide data and information to enable informed ‘voting’ choices on the effective make-up of a Board. This data availability has been used to particular effect on the question of climate change readiness, where individual directors have been voted down due to their lack of climate change credentials. It focuses more attention on the make up of the Board.
