Do Not Miss These Trends From Corporate Governance Expert Canada

As we make our way through the beginning of 2021, there are a number of corporate governance trends that appear to be emerging that are expected to have an impact on various organizations. While 2020 had governance focused on climate risks, cybersecurity, and shareholder activism solutions, corporate governance expert Canada focuses on higher altitudes this year.

Do you want to improve your existing corporate governance strategies? Are you considering professional help from a corporate governance consultant Canada? If so, prepare yourself to take advantage of the following trends for 2021.

Management/Board Dynamic Recalibration

Most executives and directors will confirm their value and roles on leadership duties, following the pandemic-driven accommodations. Clarity will play a critical role in decision-making, while the traditional distinction between management responsibilities and board responsibilities will require recalibration.

Special efforts are essential to restoring the key board and management monitoring duties. The good news is that a corporate governance expert Canada can help you with this.

Board Refreshment Emphasis

In 2021, boards need to focus on more extensive and efficient director refreshment practices. By doing so, they can accommodate any increased diversity goals readily and with ease.

The director tenure continues to be very extensive. Most board vacancies are taken by an experienced director. Besides, over boarding policies, retirement requirements, performance evaluation, and term limits will be part of wider application.

Diversity Commitment Acceleration

When achieving diversity due to accelerated public and social expectations, the boards are expected to respond to signs that they need to showcase better efforts. That is especially true with regards to outsized workplace-related concerns and gender inequality during the pandemic among women.

Additionally, accelerating diversity commitment is also related to organizational disparities. This involves underrepresented communities and ethnicity, which all have long-term consequences if they are not properly addressed.

Greater Human Capital Emphasis

Human capital will receive greater and deeper governance focus due to several reasons. The emphasis on the fiduciary obligation is essential to workplace vitality since it is one of the top corporate assets. When it comes to the corporate agenda, inclusion, diversity, employee engagement, employee safety, and health, will become some of the main topics.

Addressing Continued Volatility

In 2021, directors are expected to confront strategic and tactical implications of continued regulatory, economic, social, and political volatility. Not only that, but they will also address other concerns such as income inequality, continued societal fragmentation, inflation, trade conflict, and economic growth. That way, they can exercise closer management interactions and increased attentiveness.

More Discipline in the Board Processes

New issues will surround the director's efficacy along with individual liability exposure towards board decision-making practices changes. So, this will call for more disciplined board processes. The management-to-board information flow sufficiency will also be revisited.

2021 will bring changes in the corporate governance of our organizations. As long as you have an expert by your side, you will be able to adapt and succeed through these changes.

Corporate Governance Consultant Canada offers Board Evaluations in Canada, Governance Consultation in Canada & CEO Selection in Canada. Visit https://chairmanofboard.com/ to book an appointment today.

Professor David R. Beatty of chairmanofboard.com provides corporate governance, board evaluation and CEO consultation in Canada. He offers valuable experience working with global boards and CEOs.