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Exemplar Performance Advantage’s

10 point plan for a boardroom review

Performance consultant Exemplar’s Con Livissianis says a well-run board is comprised of individual directors who are competent in a range of skills, especially financial literacy and risk management.

“Boardroom shakedowns and strict ASX guidelines mean the spotlight on the boardroom shines even brighter,” says Livissianis.  “For those thinking of taking up a board position, you should make sure your fellow directors have all the necessary skills to be competent.”

A good board is also noted by the reputation of the chairman and sustainability of the business.  Key questions and indicators are: 

1.   Determine the balance of non-executive and executive directors.

2.   Check for consistency of performance.

3.   Query fluctuations in the EPS (earnings per share) and the DPS (dividends per share)

4.   Does the board have performance targets set for the next three years?

5.   Ask about directors’ performance reviews.

6.   Is there a succession plan?

7.   Examine issues of tenure.

8.   How long has the external audit partner been there?

9.   How many board committees?

10. Have the directors had a pay review in the past two years?

Con Livissianis – Exemplar Performance Advantage

“For those thinking of taking up a board position, you should make sure your fellow directors have all the necessary skills to be competent.”

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