Board https://boardmanagementsystem.info/board-composition-and-executive-control-of-the-company composition is the mix of people who are selected by a board to guide an organisation. This includes the ratio of outside directors and inside directors and the proportion of women, men and minorities, and whether the board members are of different generations. It also considers the proportion of expertise in governance and management issues, such as fundraising and legal risk.
Diversity is a key element in a balanced board composition. Many boards are searching for new ways to increase diversity in their membership. To find gaps in their diversity, companies can conduct an audit of current board members, and then determine where recruitment efforts are most needed. Diversity should be considered in all aspects, from race and gender to education and age to abilities and experiences.
In addition to taking into account diversity, an effective board needs matrix can also help boards understand what kind of individuals they require on their board. A matrix is a grid similar to Excel that lists the qualities of board directors as well as the abilities required to perform their duties. Based on this information a committee can come up with an outline of possible nominees and rank them according to how well they fit the requirements.
A board must consider the interests and requirements of shareholders and the management team. This typically means that the board consists comprising a mix of internal and external directors, with inside directors having experience in managing non-profits or businesses. Boards also have a chairperson, who will oversee the work of the board and the committees.