Multiple directorships: How many is enough?
While a limit is not prescribed in S'pore, regulators are aware of the pitfalls, writes EUGENE KANG
Add BT as a preferred sourceDIRECTORS with multiple corporate directorships have often attracted the attention of corporate governance watchdogs.
The concern lies with the time fragmentation that occurs when a director also serves on the boards of other companies. A director of too many companies is likely to be an ineffective monitor of corporate management because he or she would be too busy to allocate sufficient time to govern any one company.
The time commitment needed is now even greater with the increasing responsibilities of corporate boards. The negative impact of time fragmentation is further reinforced by cases of companies with busy boards experiencing lower performance, retaining their CEOs despite poor performance, and furthermore excessively compensating these CEOs.
TRENDING NOW
Singapore banks may need to address indirect exposure to captive coal in their financing policies
Tiger Beer lines up new products as Singapore operations’ role shifts from brewing to innovation
‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse
‘Very low chance’ that US-Iran deal reverts energy flows to South-east Asia through Hormuz: Bloomberg Economics
