Beverly Cole
Director: Bank OZK
 

A book review by Howard Brod Brownstein

Mandated limits on service time are the only way to guarantee new perspectives and fresh ideas.

Some findings raise the question of whether “diversity fatigue” is setting in.

Diligent Institute and 22 other partner organizations recently released Board Diversity Gaps: The Global Modern Leadership Report 2022, a report that offers a comprehensive look at corporate boardroom composition and diversity on a global scale. The findings include a detailed picture of diversity in the boardrooms of American companies as well as how they compare to their international counterparts.

Tech boards have the most directors, but lag behind their number of Asian employees.

Asian Representation on Fortune 1000 Boards, a report from the KPMG Board Leadership Center and Ascend Pinnacle, found that the perspectives of the U.S. Asian community are lacking in most Fortune 1000 boardrooms.

For directors, it’s essential to understand a company’s finances and anticipate future obstacles.

In a McKinsey & Co. survey of 1,597 public company directors in 2011, 34% of directors said they did not understand "industry dynamics" and 26% did not understand how the company created value. Just 10% said they knew the industry, and only 16% knew how the company created value. McKinsey studies through this July reinforce these numbers and conclude, "few say their boards are better at creating long-term value."

Success with sustainability requires directors to drive bold action in a decisive fashion.

As companies come under growing pressure to make greater strides on sustainability, boards must stop thinking of sustainability as a cost or an exercise in risk management and instead view it as a business essential.