The composition of the board is a composition of a board to guide an organization. This includes the mix of outside directors and inside directors and the proportion of men, women and minorities, and whether the board members are of different generations. It also considers the amount of expertise available in management and governance issues, such as fundraising or legal risk.
Diversity is a major driver of a well-balanced board, and many boards are looking for new ways to diversify their members. It is possible to begin by conducting an audit of their current board members to discover the gaps in diversity and identify where recruitment efforts should be directed. Diversity should be considered in all dimensions including race and gender, age and education in addition to skills and experience.
In addition to focusing on diversity, a good board needs matrix can board composition and executive control of the company help boards determine what individuals they require on their board. A typical matrix is an Excel-like grid that lists the characteristics of directors on the board as well as the skills they need to fulfill their duties. This data allows the committee to make an initial list of candidates and then rank them according to how they meet the requirements.
A board should balance the interests of shareholders with those of the management team. This usually means that the board is made up from a mix of inside and external directors, with the inside directors having experience in managing non-profits or businesses. Boards also tend to have a chairperson who is the head of the board and its committees and oversees the work of the board.