Board Governance: Bonuses, Culture and Diversity

On October 19 the FT reported that a poll they had conducted with members of the FT City Network debating forum (comprised of 60 company bosses and policymakers) showed that “a clear majority spoke in favour of employee representation on boards, undermining the belief that big business is hostile to the idea“. It was earlier in the month that Prime Minister Theresa May made proposals for staff representation on boards, stating at the Conservative Party conference “Too often the people who are supposed to hold big business accountable are drawn from the same, narrow social and professional circles as the executive team. Too often the scrutiny they provide is not good enough.

In the latest series of Mishcon Thinks, we take a look at Board Governance and the myriad issues that Boards have to contend with today. In this film, Board Governance: Bonuses, Culture and Diversity, Employment Partner Greg Campbell advocates for broader representation on boards, suggesting that diversity is not just about gender or race but also about ensuring there is room for “people from different parts of the business and people with different skill sets so that [there] is a properly holistic view of where the business sits.

Alongside the question of diversity, Greg also delves into the thorny issues of bonuses and workplace culture – as well as the interface between the two: “You cannot have good culture around bonuses if the board are not leading by example.