One third of business leaders say their primary board does not have a succession plan in place to replace board members, according to new data from the Institute of Directors (IoD) in Ireland.
“A board with no succession plan is not future-proofing its business nor planning for the board diversity which is essential for an effective, high-performing board,” said Maura Quinn, Chief Executive of IoD Ireland.
The latest quarterly Director Sentiment Monitor for the third quarter reveals that 45% of board members admit that they were recruited as a result of a direct approach from a member of the board.
This is despite the fact that most respondents said they believe diversity is important when recruiting new board members.
“Some boards are still relying on their own networks, which is neither an open, transparent, nor independent process,” said Ms Quinn.
Ms Quinn said boards which are “personally” and “professionally” diverse are more likely to create a “listening, collaborative environment”.
“One which is constructively challenging and accepts and incorporates disparate perspectives to deliver enhanced board effectiveness and, ultimately, company performance,” she said.