The composition of a board is the group of people that a board chooses to help it govern an company. This includes the ratio of women to males, the proportion of women and minorities and the ages of board members. It also examines the mix of expertise in management issues and governance matters including fundraising and legal risk.
Diversity is an important factor in a good board composition. Many boards are searching for ways to diversify the membership. The first step is to conduct an audit of their current board members to identify gaps in diversity and decide where efforts to recruit should be directed. Diversity is a must across all dimensions including gender, race as well as education and age, as well as the skills and experience.
A matrix of board needs can assist boards in understanding the kind of people that they need on their board. A typical matrix is a grid similar to Excel that lists the traits of directors on the board as well as the abilities they require to carry out their duties. Using this data the committee can make an outline of possible candidates and rank them based on how closely they meet the criteria.
A board must consider the interests https://boardmanagementsystem.info and requirements of shareholders and the management team. This usually means that the board is made up from a mix of inside and external directors, with the inside directors being experienced in managing non-profits or businesses. Boards also have a chairperson, who oversees the work of the board as well as the committees.
