Beyond the old boys’ network

“Beyond the old boys’ network” – New Pan-European Report Provides Blueprint For Corporate Governance. 

Appointing a board director is not what it used to be.

Four forces are pounding the boardrooms of Europe’s companies: market volatility and economic instability, more regulatory pressure, a demand for greater diversity (both gender and broader), and growing shareholder activism.  To compound complexity, there has been a change over the last decade in board nominations processes, primarily as a response to new waves of corporate governance guidelines.

Although governance codes vary across jurisdictions, we have found both from experience and the results of our research that best practices transcend different governance jurisdictions.

It is this idea that led us to interview several dozen European business leaders to add to our own experience and produce a manual of 14 recommendations covering the entire nomination process, from the structuring of the process through succession planning, candidate selection, candidate interview, and the induction of new directors.

The changes highlighted throughout this study are a clear pointer that the age of Europe’s boardrooms as “an old boys’ network” is over. Recruiting directors among friends and business acquaintances is heavily criticised and the few boards that still do so stand out. What is emerging is the “battle-ready board,” diversified in gender and thinking, equipped with the skills and competencies tailored to the strategy of the company, and well able to meet the challenges that European businesses will face in the coming years.

ecoda.org/news-details/article/press-release-new-pan-european-report-provides-blueprint-for-corporate-governance-by-korn-ferry/