BOARD

Question 1

3 types of boardroom diversity

Answer 1

social, skills stakeholder

Question 2

social diversity includes

Answer 2

gender, ethnicity, social background, age and disability

Question 3

Gender diversity UK

Answer 3

Lord Davies 2011 all FTSE 100 companies aim to have 25% females by 2015

Question 4

Gender diversity EU

Answer 4

introduce quotas, e.g. Norway 40% must be female

Question 5

Gender diversity research

Answer 5

shows companies with more females outperform those with mainly males

Question 6

Gender diversity adv

Answer 6

reduce aggressive behaviour of all male board and consider issues more objectively

Question 7

Gender diversity disadv

Answer 7

takes longer to come to a decision

Question 8

Age Diversity Guidelines

Answer 8

general 18-70, but these aren’t legal requirements

Question 9

Age diversity upper limit

Answer 9

older people may find it harder to keep up with technology or new standards

Question 10

Age diversity lower limit

Answer 10

dont have real life experience about running a business or ability to make large decisions

Question 11

Social diversity disadv

Answer 11

it wont lead to correct decisions being made itself, must also have a range of skills on the board too

Question 12

skills diversity

Answer 12

refers to board members having a broad array of skills, qualifications and competences

Question 13

stakeholder diversity

Answer 13

stakeholders refer to representation on the board, such as supplier, customer, shareholder or employees

Question 14

stakeholder diversity EU

Answer 14

more common in the EU where theres 2 tier boards w/ supervisory board full of stakeholders

Question 15

stakeholder diversity Theresa May

Answer 15

attempted to get employee representative on board, however it’s a conflict of interest to have 1 person from each stakeholder on board

Question 16

UK corporate governance code on boards

Answer 16

attempts to widen the pool of applicants as its seen that applicants come from a narrow pool

Question 17

Tyson Report 2003

Answer 17

states boards should be drawn from a wider pool of applicants and not just networks of similarly minded people

Question 18

EDs and NEDs in UK

Answer 18

board should consist of majority of NEDs, they should be independent

Question 19

EDs and NEDs in practice

Answer 19

can be difficult to have INEDs, its argued the longer a NED remains on the board, the less independent

Question 20

Size of a board

Answer 20

8-10 members, any smaller, not enough skills. any larger, hard to reach a decision

Question 21

Tenure of a board

Answer 21

NED should serve no more than 9 years. Chairs must add NED and chair years. (unless a quota is being filled e..g female on board)

Question 22

Discussion within board meetings

Answer 22

have a frank and open discussion about matter and issues on their board meeting agendas

Question 23

Directors role in board meetings

Answer 23

not there to rubber stamp the decisions of the CEO

Question 24

NEDs on boards

Answer 24

are meant to constructively challenge the decisions of EDs