How can non-execs be more effective?
Good governance requires non-execs to challenge the thinking of the board, particularly executive directors, Murray Steele looks at how they can do this effectively.Send to a friend
‘However, closer study of the firms listed on the BVL suggests that as firms internationalise either for finance or to access markets, good governance is becoming integrated into the business model so that regional firms operating in Peru or large so-called trans-latinas have significantly better compliance.’Send to a friend
‘Yet, when we look beyond these snappy headlines, we find not only has the concept of shareholder activism been hi-jacked by a small cadre of extremely wealthy private equity investors with large shareholdings to leverage but, more worryingly, the idea of increased board accountability is often just a polite synonym to describe rampant often wild shorttermism in investment decision making.’Send to a friend
‘The purpose of a good Chair isn’t to lead thinking for the board, but rather to be an independent facilitator. Someone capable of encouraging people to think around topics and seek knowledge and data to make good decisions, instead of relying on existing beliefs.’