Malaysian Code on Corporate Governance 2017
Board composition influences the ability of the board to fulfil its oversight responsibilities. An effective board should include the right group of people, with an appropriate mix of skills, knowledge, experience and independent elements that fit the company’s objectives and strategic goals.
The right board composition will ensure sufficient diversity and independence to avert ‘groupthink’ or ‘blind spots’ in the decision-making process. It also enables the board to be better equipped to respond to challenges that may arise and deliver value.
Diversity on boards has been a topic of growing interests. The ambition for more diverse representations in boardrooms has been championed by many, including the 30% Club Malaysia which was launched in 2015 to inspire sustainable business-led voluntary change to support gender diversity on boards. With this effort, we see a slight improvement in the number of companies with at least 30% female directors on boards[1], from 9% in 2016 to 19% in 2019.
However, true board diversity goes beyond that of just gender. Companies must meet the needs of various stakeholders, including shareholders, employees, customers, supply-chain partners, communities and the environment. The ideal way to represent a diverse group of stakeholders is a well-constituted governing board comprising directors who provide diversity of thought, experiences, and perspectives.
In the Malaysia Board Diversity Study conducted by the Institute of Corporate Directors Malaysia (ICDM) in collaboration with Willis Towers Watson (WTW), we examined over 300 top companies with primary listings under Bursa Malaysia ("Bursa") against the multiple dimensions of board diversity.
Apart from the Malaysia Board Diversity Index, we deep dived to examine the correlation of the company’s performance against the dimensions as below. Read more about it here.
Join us in the launch of the inaugural Board Diversity Index in Malaysia. Learn more about the board diversity landscape in Malaysia.
Which are the top 10 companies with the highest diversity scores in the Diversity Index? Which dimensions of diversity show stronger correlation to the company’s performance? Are disclosures on diversity and inclusion key to investors’ investment decision? Who is responsible in reengineering your board architecture? What should your next steps be? What is the role of the independent directors and nomination committee chair?
In collaboration with
Reference
[1] Boards of the top 312 Bursa-listed companies sampled in this Malaysia Board Diversity Study.
Programme Agenda: Wednesday, 07 April 2021 | 10:00 AM - 12:00 PM
| Wednesday | 7 April 2021 | |
|---|---|
| 10.00am | Context Setting and Launch of the Malaysia Board Diversity Study & Index by Michele Kythe Lim, President/CEO of ICDM |
| 10.05am | Presentation The Malaysia Board Diversity Study Presentation of key findings and recommendations from ICDM & WTW research study by Shai Ganu, the Managing Director, Global Practice Leader - Executive Compensation & Governance and Krissandi Lee, Associate Director – Executive Compensation, South Asia at WTW
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| 10.35am | Advocacy Dialogue Diversity Is More Than Just A Numbers Game A robust dialogue session between the invited panel of directors from amongst the companies with outstanding board diversity scores. The session seeks to explore how they have embraced the different dimensions of diversity and how they have helped improve their overall board effectiveness and company performance. Panellists:
Moderator:
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| 12.00pm | End of Virtual Dialogue Session |
Send us your burning questions or issues you would like to bring up during the dialogue session to advocacy@icdm.com.my
Speakers
