Governance Leadership Centre roundtable discussion (October 2014): Board composition and skills mix
Australian Institute of Company Directors (video), October 2014
Ensuring that board members have an appropriate mix of skills, competencies and characteristics is an important aspect of good governance and is critical to organisational performance. In this video, leading Australian directors offer some insights on board composition and skills mix. Nancy Milne AM FAICD, Chair, Securities Exchanges Guarantee Corporation sees “boards evolving into having more specialist skills in particular areas”. Jerry Maycock FAICD, Chair, AGL comments that as a director, “as well has having a specialised capability, you need a broad enough competence across a whole series of skill sets actually to fulfil your obligations as a director”. This has implications for recruitment of board members; he says, “it is getting quite tricky to find that combination of specialist skills plus the broad suite of skills”. Kevin McCann AM FAICD, Chair, Macquarie Group considers that the issue of board composition requires more attention. He states that “the days of the gifted amateur are gone”. Increasingly, boards need “deep vertical skills” with directors who understand the complexity of a business.