Board diversity: the international perspective

THE oft-argued point of diversity on boards has often focused on skills and gender. Another dimension that is increasingly being sought on some boards is foreign directors who can provide a geographical perspective beyond the company's home base.

Foreign directors are usually found on the boards of companies with global or regional presence and ambitions.

Spencer Stuart's Board Index 2013 reports provide some comparatives of foreign directors on these large companies. It shows that the Netherlands leads with nearly 42 per cent of foreign directors among the boards of its largest 50 companies. In contrast, the US lags with only 7 per cent of foreign directors in the top 200 largest companies. In Hong Kong, 18 per cent of its directors in the largest 50 companies are foreign.