Inclusivity of diversity
The issue of diversity in the workplace has been an ongoing one for many years. In South Africa, it means to include people of different backgrounds and beliefs in the workplace. However, it is clear that much work still needs to be done in terms of changing the mindset around this topic. According to Sneha Shah […]
The role of trust now and in the future
The basis of our entire legal system has been that people who contract with one another do so inherently based on the existence of trust. It is true that in order to conclude a legally binding contract, certain requirements must be met: Consensus between the parties; Intention – offer and acceptance; The parties must have […]
Lessons for the Youth
June marks the celebration of Youth Day on 16 June. It is youth month and for me this has been a particularly reflective one this year. Perhaps because the concept of youth and who classifies as “youth” is really a matter of perception. In many instances (from a tax incentive and employment incentive perspective) perhaps […]
The link between board composition and financial performance
We have been hearing buzz words like board diversity and of course directors duties, but what is the true link between the board and ultimately the shareholders? Well, its all about performance. All about steering the ship in the right direction. The ability to steer is all about who you have at the wheel as well as how the team operates.
According to Parmi Natesan, CEO, Institute of Directors in Southern Africa:
“Research shows what most shareholders probably instinctively know: that the experience, expertise and ethics of board members directly affect the quality of their investment in the company.”
“The MTN case provides an example of how board changes can impact the market. Shareholders should bear this in mind, and ensure that boards not only have the right skills, but also that well-thought-out succession and rotation plans are in place.”
One research paper into the correlation between board composition and financial performance of listed companies concludes that “board structure does play an important role in influencing firm performance. There is practices a need to monitor and practice the different elements of a corporate board to ensure good corporate governance practices are upheld.