Chairman and the Board: Australia Summary Report

Executive Summary

‘Chairmen are trusted and respected, but need to improve relations with deputy chairmen’

There is general consensus that Chairmen are trustworthy individuals of integrity. The openness and mutual respect in their relationships with CEOs and MDs is ranked highly by all Board members and their commitment to organisational goals is valued.

Nevertheless, there is a perception, particularly among Deputy Chairmen, that Chairmen seek insufficient feedback on their own performance. Similarly, Deputy Chairmen see Chairmen as being ill-disciplined, suggesting that there is room for improvement around the area of internal governance.

‘The role of Deputy Chairman is not well understood’

While Deputy Chairmen have the confidence of their Boards and are deemed to work well with their respective Chairmen, the results of the survey show that their own role is not widely understood. In particular, their role as a link between the Chairman and their Board, alongside their role as mediator — the person to approach when difficulties arise — are both identified as weak points by survey respondents.

In addition, their relationship with the CEO or MD is seen as fragile, particularly among CEOs and MDs themselves. All of this suggests that a better understanding of the role and responsibilities of the Deputy Chairman would enhance their effectiveness.

‘Board process, although well advanced, still merits scrutiny’

In general, the survey findings have a range of implications for the decision making process at Board level. It is clear that processes for Board member replacement are well developed, but continuous improvement in this area is considered necessary.

Further, Chairmen and Deputy Chairmen need to develop a more cohesive view of how approaches to board member replacement can be enhanced.

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