Board Composition

Board composition reflects the people who comprise a company's board of directors, who are responsible for protecting shareholder interests.

Board composition examines the people on a company's board of directors and their management backgrounds. 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 variety of thought and can lead to more creative solutions. They also help organizations prevent potential lawsuits and reputational damage.

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