Elevating Board Performance at Financial and Corporate Institutions
Butterworths Journal of International Banking and Financial Law, July/August 2011
7 Pages Posted: 15 Jul 2011
Date Written: July 14, 2011
Despite considerable reforms over the past two decades, boards – particularly at financial institutions – have been criticized recently for poor stewardship.
This article argues that the lack of attention to behavioral and functional considerations – in particular, relating to director mindset, board operating context, and evolving human dynamics – has hampered the board’s effectiveness.
To reach their potential, boards and their members should: (i) think like an owner; (ii) know their companies; (iii) be prepared to ‘roll up their sleeves’; (iv) take charge of their priorities; (v) hire a collaborative CEO; and (vi) protect their authority and independence.
Note: This article has been adapted from “Elevating Board Performance: The Significance of Director Mindset, Operating Context, and Other Behavioral and Functional Considerations," available at http://ssrn.com/abstract=1832234.
Keywords: board of directors, mindset and behavior, board culture, independence, authority
JEL Classification: G34, M14
Suggested Citation: Suggested Citation