Board composition is the people who comprise a company’s board of directors and who are responsible for protecting shareholder interests.
What is board composition?
Board composition examines the people and their management backgrounds for a company’s board of directors. Best practices for composition include having directors serving for no more than 10 years and not sharing similar work experience with company executives.
Gender and racial diversity on a corporate board are also important. Diverse teams have more diversity of thought and can lead to more creative solutions. They also help organizations prevent potential lawsuits and reputational damage.