Dynamic governance: a new leadership model for Non-Execs

Abstract

Purpose – The purpose of this article is to present the latest Heidrick and Struggles (H&S) corporate governance report, Towards Dynamic Governance 2014. H&S have been monitoring the behaviour and habits of European boards for the past 15 years. Every two years they publish their European corporate governance report. Design/methodology/approach – H&S scrutinise the composition of boards in terms of gender, nationality and age; examine their tenure and the regularity of their meetings, and question how collective decisions are made. Using both quantitative and qualitative data collection, they canvass the opinions of board members drawn from the top listed companies of 15 European markets, formulating a unique and shifting bird’s eye view. Findings – H&S latest corporate governance report, Towards Dynamic Governance 2014, was published in March this year. There is no doubt, if we cast our eyes back to 1999, when the first report was prepared, that there have been notable improvements. The commitment, diversity and flexibility of boards is on the up. Sixty-eight per cent of boards in The Netherlands continue to combine the roles of the chief executive officer and Chair, and 40 per cent of boards in Poland still include no female directors, but the overall trend revealed by the data is positive. Originality/value – This is a brand new study made up of both quantitative and qualitative data. The report compares the behaviour and progress of different countries but perhaps even more revealing are the conversations with board directors and executive teams conducted as part of the report’s board effectiveness survey. These inputs enable H&S to tell a more nuanced story and to draw conclusions about the ideal future for European boards.