SGX RegCo CEO tells firms: Avoid 'cookie-cutter' hiring in board diversification
Firms can use tools such as Board Match and Board Listing to look for candidates.
Tan Boon Gin, SGX RegCo CEO, told companies aiming to diversify their boards to avoid a “cookie-cutter” approach in hiring and instead look for candidates that meet their unique needs.
In his speech at the Singapore Institute of Directors’ (SID) Nominating and Remuneration Committees (NRC) Chapter webinar, Tan said SID can assist companies in looking for candidates through its search tools such as Board Match and Board Listing
To achieve diversification, Tan said boards will also have to consciously encourage healthy board dynamics whilst integrating new entrants, to enable respectful debate on issues in a collegiate manner, whilst still making decisions in a timely fashion.
“I have spoken previously of the 4CT tool developed by the Centre for Creative Leadership, which builds board collaboration, candour, challenge, commitment and trust, as one example of the myriad tools that exist out there,” Tan said.
“The SID Listed Entity Director Programme for first-time directors supported by SGX has an entire module devoted to board dynamics. For those interested in upskilling and preparing themselves for future roles, SID has launched Accreditation and Board Readiness Programmes,” Tan added.
Tan said SGX and the Council for Board Diversity will jointly launch a report looking at the state of board diversity disclosures.
“We will examine both the state of disclosures as a whole and the quality of disclosures. The review also allows us to identify laggards and to explore ways to improve the overall and individual company performance,” Tan said.