Source: Gartner
General counsel should focus on sourcing and recruiting to improve director quality and social dynamics.
Only 38% of company boards of directors have high levels of director quality and positive social dynamics, according to a survey by Gartner. In February 2023, Gartner surveyed 92 general counsel (GC) to provide GC with unique benchmarking information about the corporate governance practices of their peers, both public and private.
“General counsel spend a significant amount of time and energy on director onboarding, education and evaluation, while giving comparatively less attention to sourcing and recruiting,” said James Crocker, Director, Research, for the Gartner Legal & Compliance practice. “These efforts seek to strengthen overall director quality, but research indicates there is room for improvement for many organizations.
“Effective boards hold executives to account and make positive contributions to corporate governance, strategy and risk management. Yet half of GC report that their board of directors is not fully effective based on these criteria.”
The survey revealed that the single biggest factor in improving board effectiveness is increasing director quality and social dynamics, leading to a 53% rise in board effectiveness. However, Gartner experts scored GC on a director quality and social dynamics index and found that 62% do not meet the criteria.
