Evaluating Board Skills

A board skills matrix can be a useful governance tool and is valuable to investors

Investors are focusing on board composition to evaluate whether directors possess the skills, knowledge and experience necessary to oversee the business in line with the company's strategy. Disclosure of a board skills matrix can help investors make such evaluations and reassure them that the board has a robust process in place to assess the mix of skills and diversity it currently has and/or is looking to achieve.

The skills matrix typically represents a visual snapshot of experience and qualifications for the directors to be appointed at the upcoming annual meeting. Although director biographies include individual qualifications, the skills matrix is becoming more common and a more efficient tool to depict the overall expertise and help assess boards.