In the corporate world, the repercussions of any misstep in the boardroom are usually felt the most by the people at the operating level.
The workers are usually the main casualties of displacement, pay cuts and restructuring. For publicly traded companies, retail investors will also be affected.
There are established metrics for employees to measure their performance, but probably not so for individuals sitting on the board.
The methodology of selecting board members seems opaque. Yet, they act as custodians and represent key stakeholders, including employees and shareholders, when discharging their fiduciary duties.
In Singapore, listed companies should adopt the code of corporate governance framework set by the Monetary Authority of Singapore.
What is difficult to determine are the motivations of the board members. Does the passion to serve apply to individuals appointed as directors? Or are they after fame and financial compensation?
Key performance indicators (KPIs) are set for employees. Could KPIs also be formulated for the board of directors?
Tan Kar Quan