Nina Nærby is the X-factor judge of the top of the senior executives and non-executives
When big listed companies need external help evaluating their boards, Nina Naerby is frequently called upon. She knows how to increase the board’s effectiveness and how to assess the board members competences…
Chairmen not taking responsibility for getting women onto top management teams
New research shows that gender balance at the top of the large publicly listed Danish companies is moving slowly. Chairmen and boards seem to be neglecting their role in implementing diversity. While 36% of board members are female, the same is true for only 13% of executive management teams.
According to Nina Nærby, Managing Director for Leadership Advisor Group and advisor for several large Danish and foreign company boards, boards have gotten off too easily in terms of following up on companies’ implementation of diversity policies. Boards are responsible for diversity at the top management level. One can wonder whether some are intentionally setting such broad goals that it is impossible to see how women are being recruited for this top level.
Nina Nærby’s advice: “Shareholders should demand that numerical goals are set for the executive management team, and that clear reporting is done both on the results and on the ongoing activities to reach the goals”. Read more here:
Lack of diversity among Denmark’s most powerful board chairmen: 1 non-Dane – and no women
In Denmark, diversity is an iceberg that needs to be melted…not just with regard to gender, but also nationality and age. Studies from both the IMF and McKinsey show a significant relation between gender diversity in top management or board of directors, and higher profitability.
According to Nina Nærby, Managing Director for Leadership Advisor Group and advisor for several large Danish and foreign company boards, the problem is rooted in the low number of female top managers in Denmark, as top level leadership experience is critical when choosing board members. Read more here:
Three headhunters hunt for top leaders for boards: here’s what they are looking for
An interview with three headhunters who are actively working with the boards of the biggest companies, shows they are looking for CEOs and CFOs who think digitally and sustainably, as well as who are able at the same time, to handle the task of building the right culture in these companies. Many of these boards are not prepared to match the agenda that shareholders and customers now demand. Therefore, we are likely to see board turnover. Read more here:
https://borsen.dk/nyheder/virksomheder/headhunterne-jager-topchefer-til-bestyrelserne
Only one in five Danish C25 boards complies with the recommendations
The guidelines from the Committee for Good Corporate Governance recommend that boards should be evaluated every year and the results written up on their website’s home page and annual report, but only 20% of the C25 are managing to do this with robust quality. “In reality it should not be a difficult task” says Nina Naerby from Leadership Advisor Group, the company who has done the analysis.
https://borsen.dk/nyheder/executive/kun-hver-femte-c25-bestyrelse-overholder-anbefalinger
New demands on salary transparency and sustainability
For the first time in four years, the powerful Danish Committee for Good Corporate Governance has updated its recommendations, and at the same time increased focus on (among other areas) social responsibility and management remuneration.
The recommendations are not “law”, but most companies follow them, especially the large publically traded companies. According to Nina Næerby, Managing Director for Leadership Advisor Group and advisor for several large Danish and foreign company boards, the recommendations are followed partly because the Committee includes members with board experience who want to ensure the best for companies, but also because most companies realize that if the soft recommendations are not followed, there is a risk of them becoming hard law.
Read more in the article here (paywall/subscription):
No more hiding behind the figleaf for the board of directors
From January 2021, it will become the board’s responsibility to become involved in the company’s purpose (what the company does besides earning money for shareholders) and in ensuring alignment between the purpose and the company culture and values. The board will also become responsible for ensuring all decisions are made with sustainability in mind. These changes to the guidelines are the result of too many examples of companies where purpose and social responsibility have “looked nice on paper” but have not been practiced down through the organization.
“The whole mindset around sustainability and purpose is now not just an internal matter, but also aimed at the external stakeholders. This helps both recruiting and retention of the most skilled employees…” says Nina Nærby. “Many C25 companies have not had a very clear or relevant purpose, while companies such as Lundbeck, Rockwool and Chr. Hansen have held purpose as a guiding star for many years.”
Nina Nærby is also satisfied that the Danish Committee for Good Corporate Governance has tightened the recommendations on board evaluation, making it more explicit that there should be an external evaluation of each individual board member at least every third year. This makes each member’s value creation on the board more visible. Read more in the article here:
Increasing diversity on the boards of Danish C25 companies
There is a noticeable increase in diversity on the boards of Denmark’s largest companies. Non-Danes and women have found their way to board positions, but there is still a need to promote women into leadership roles before equality can truly be achieved…
https://borsen.dk/nyheder/executive/mangfoldigheden-vokser-i-eliteselskabernes-bestyrelser
Board evaluations in Denmark are a bit like the wild west
Never before have so many boards’ of listed companies been evaluated in order to comply with good corporate governance. But many board evaluation reports are not worth the paper they are written on…
https://borsen.dk/nyheder/executive/artikel/11/230621/artikel.html
