Bertrand Richard, Co-Head of the European Board and CEO of Succession Practice, spoke about Robustly Governed Board of Directors at the 2nd International Compliance Forum which takes place at the Hilton Park Hotel in Nicosia on October 14th.
Richard said that the usual reasons for board under performance include inadequate expertise of board members, lack of time dedicated to the board by board members, lack of commitment of management towards board, lack of teamwork spirit within the board or inadequate leadership, lack of clear expectations on what should be the role of the board, lack of adequate working conditions.
He also explained that for an effective board there needs to be a real mutual trust between the board and the CEO and his Exco, a clear will to work together and a clear split of role between the Chairman and the CEO. He added that it is important to have a balanced, matured, slim and committed board and a board which actually functions as a team providing an efficient Board dynamic driven by the Chairman.
Additionally, Richard said that having an effective board needs clear set of rules between Chairman and board members, on what is expected from them, a clear definition of the board role and respective expectations (from the board, from the management), a well prepared, structured and run meetings, an efficient articulation between board and committees especially in terms of risk, audit and strategy, a real exposition of the management team to the board, a regular assessment of its performance and of the individual board members contribution.
The culture of the board was also discussed during Richard’s presentation. He stated that the board’s culture is a critical factor in how effectively it operates. He explained that the board culture depends on a number of factors, for example, the nationality, history, cultural roots and ownership structure of the company, the size of the board, the profile of directors, and the degree of formality, whether the roles of chairman and CEO are combined or split, while the chairman plays a significant role in shaping the culture of the board.
About
The 2nd International Compliance Forum, which is addressed to all compliance professionals, will presents the latest international institutional policy trends and challenges, as well as developments in servicing international investors, whether high net worth individuals or organizations specifically relating to compliance. It brings together banks, accounting, tax and legal firms, administration services (fiduciary) firms, international corporations and the various Regulators involved, to discuss and exchange practical ideas on how to achieve effective compliance when it comes to European directives, international and local law.
