BOARD OF DIRECTORS COMPOSITION AND EFFECTIVENESS

For a board of directors to be able to execute its functions in a proper manner, and hold effective, in-depth and exhaustive discussions on matters coming up on its agenda, great importance is attributed to diversity in the composition of the board of directors, and having the board composed of members having different skills, in order for meetings of the board of directors becoming a focal point of exchange of opinions, and a place where in-depth and productive discussions are carried out, on the basis of the cumulative experience and skills of each of the members of the board.

In this scope, we assist corporations in examining and estimating the composition of their boards of directors, as well as the mix therein, and in formulizing an official policy on such matter. We further assist corporations in establishing an organized and methodical process for appointment of directors to their board, a process which is both professional and transparent, with the objective of reinforcing the corporate governance of such corporations and increasing the level of trust their investors have in them. The process is carried in the utmost professional and effective manner commensurate with the highest level of corporate governance.

Among the advantages of the process, one can count:

1. An assurance of the professional level of the board of directors and its expertise over time, including the strengthening of the medium-long term decision making process, according to the corporation’s needs, goals and significant risks.
2. An improvement in the level of trust the investors have in the corporation together with increasing the level of transparency towards them, since the issue of appointment of directors in public companies is at the epicenter of the dialog and discussion held between investors and public companies.

The objective of evaluating the effectiveness of the board of directors is to assess the functioning of the board and its ability to efficiently supervise the corporation’s management and support the achievement by the corporation of its goals.

We accompany our clients in this process whilst utilizing an established methodology that is suited to the corporation and its specific characteristics, with the aim of creating an infrastructure which the corporation will make future use of.

Performing a board effectiveness evaluation is nowadays common in corporations belonging to the financial sector, yet, the process is seeing a growing rate of adoption in corporations outside of the financial sector, in light of the importance of the role of the board of directors as a central part in establishing and imposing rules of corporate governance within the corporation and in the corporation’s proper operation.