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Institutional EYE

Commentary on Corporate Governance Issues

Checking the box on skill diversity

In asking companies to disclose director-wise skills, regulators are compelling a skill-based evaluation of boards. These skill-based assessments should drive board composition and director (re) appointments.

The current disclosures on director skills suggest that boards of Indian companies continue to resist an honest evaluation and to be held accountable. Directors may want the certain prestige associated with being a director – and more so if it is on the board of a listed company – but are happier without the attendant responsibility. And boards continue to shy away from holding up a mirror.

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