The boards of directors of listed and regulated companies have been hardened further during these last ten years as regulators’ tentacles have reached the board rooms and company secretary offices of thriving business and financial institutions.
It is challenging times for members of board of directors of companies. Boards have never had it so hard. They are pressured by the market to have their companies giving short-term results when they understand that the business is there for the long-term. They are asked to comply with stiffer regulations, when they should be focusing on business strategy and performance. Meanwhile, they are being hounded by small shareholders and the public on the social media as their professionalism, experience and performance is being challenged by attacks that they are not doing enough, that they are being highly (or excessively) paid and that they have conflicts of interest.
The selection of directors on boards is often criticised for the fact that it is always the same persons who are invited to sit on various corporate boards as independent, non-executive directors. Usually, these are persons of extensive experience and social standing that give prestige to the board of directors besides the benefits of competence and experience. Truly, blue ribbon boards with a list of important well-known names sitting around the table.
Chairing any meeting is a challenging task, and the burden of responsibility gets heavier when chairing board meetings where decisions are taken that have a direct impact on the business, its prospects, its shareholders and its employees. My experience with chairing boards has given me great satisfaction and a sense of fulfillment in my career, but there were instances of disillusionment and silent despair when the board finds difficulty in being steered in one direction as personalities become more important than projects, performance and results.
The confusion on the purpose of boards of directors and who qualifies as a board director lives on despite greater awareness on corporate governance by means of conferences and seminars and more restrictive criteria exercised by the MFSA on regulated or listed companies.
Employee engagement is all about the emotional connection an employee feels towards their job and their workplace. You can easily differentiate an emotionally charged culture from an unemotionally charged one.
Directors have a long list of duties most of which are of a fiduciary nature. These are obligations that have to be taken seriously by all directors including non executive directors.
The human being is made up of an array of emotions, most of them complex and difficult to understand. Empathy is all about being able to understand the needs of others, understanding what they’re feeling and thinking.
“New year, new me!” We hear that phrase countless times at the start of the year. And many of us are already enthusiastically embracing our new year resolutions.
