In a feature column for the Financial Times’ latest issue of Board IQ, Maryann Bovich, senior member of our Asset Management Practice, offers her perspective on how shifting demographics along with public and shareholder pressure are pushing mutual fund boards to hire more minorities and women.
Writing in “Committing to Boardroom Diversity Matters”, Bovich states:
There’s no question that diversity is a hot topic for fund boards. The push is not only to have a more inclusive board but also to bring diversity of thought into the boardroom. It is important to note that diversity is not an end in itself. It is a pathway to achieving broader thinking on the board and to better decision-making on behalf of the shareholders directors serve…
…Developing a relationship with an executive search firm or soliciting ideas from outside advisers with more robust networks – such as independent counsel or audit partners – can create better objectivity and help mutual fund boards maintain an active and dynamic reserve of talented, diverse candidates at the ready.
Board effectiveness is paramount, and a board that aspires to fully represent its shareholders will seek to enhance its capabilities by embracing diversity.
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