Why is Board composition an important governance issue?
Minneapolis corporate governance attorney, John Stout, explains how the makeup of the board can impact governance.
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Phone: (612) 492-7012
In my view, Board composition is the number one governance issue because everything really starts with the Board and who’s on it and how it’s organized but all of the Board functions really, work off of the people and the skills on the Board. And at the moment, we’re not where we need to be on Board composition from a number of perspectives. Sometimes its skill sets but there’s a lot of pressure right now to see more gender equity on the Board and I think that’s on the Board and the individual directors to deal with that. They need to see Board composition as a significant fiduciary issue and everyone’s seats need to be available as fiduciaries to address the needs of the corporation and the needs of the Board.