The dream board

It is time for boards to evolve and there should be more focus on new skills and expertise. These are the main issues raised in the position paper "The role of the board in the new normal: Towards the board 2.0", released by the Governance Working Group of the American Chamber of Commerce in Italy, chaired by Morrow Sodali's Managing Director, Andrea Di Segni.

This paper identifies three different clusters that represent the main challenges to boards in the future. This article by Milano Finanza reviews some of them. The first category comprises the new set of board skills and diversity on boards including gender and minority representation. The second group concerns the internationalization of the board and its most appropriate model, as well as the term of board members' tenure, which should be wisely harmonized with the business plan. Finally, the third category includes the governance-related recommendations that could bridge the gap between Italian companies and the most sophisticated financial markets, and are namely, the annual vote to reconfirm the board and/or the votes supporting individual board members.

One of the most pressing points concerns the board skills: a unique mix of experience and new competences, such as cybersecurity, digitalization, crisis management and sustainability in its broadest sense, which are essential to effectively address current and future challenges. According to the position paper, the concept of diversity should not be limited to gender only and should also consider minority representation on boards. Finally, the higher the number of the minority directors and the level of independence, then the higher the value brought for all the stakeholders, likewise the value added to the board by widening the vision and contemplating international business practices.

Read the full article here (in Italian).