The composition of the board is a mix of members that a board decides to use to help them govern an company. This includes the ratio of women to men and the proportions of women and minorities, and the ages of board members. It also considers the proportion of expertise in management issues and governance matters like fundraising and legal risk.
Diversity is a major driver of good board composition, and many boards are seeking new ways to diversify their memberships. Organizations can start by running an audit of their current board members to identify gaps in diversity and determine the areas where recruitment efforts should be directed. Diversity should be considered in all aspects including gender and race to education and age to skills and experiences.
A matrix of the needs of the board will help boards understand the kind of people they need on their board. A matrix is a grid like Excel that lists the characteristics of board directors as well as the skills needed to perform their duties. This data allows an organization to make a shortlist of possible nominees and then rank them according to how they are able to meet the criteria.
A board must consider the interests and requirements of shareholders and the management team. This typically means that the board is made up from a mix of inside and external directors, with inside directors being experienced in managing non-profits or businesses. Boards will also have a chairperson who will oversee the work of the board and the committees.
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