Chief executive officer of the Barbados Stock Exchange (BSE) Marlon Yarde believes local companies can do more to diversify their boards of directors.
However, speaking to BARBADOS BUSINESS AUTHORITY during a break in the BSE’s first annual Conference on Corporate Governance and Accountability at Hilton Barbados last Thursday, he said it would take some time for them to meet the newest time and commitment limits being recommended internationally for directors.
He was responding to comments made by presenter Professor Richard Leblanc, who said regulators were now suggesting that directors not serve for more than nine years or sit on more than two boards at a time.
The Canadian corporate governance academic, lawyer and board advisor also suggested that CEOs not sit on more than one board.
Yarde noted that even in larger, more developed markets this was something that was being phased in.
“I do agree that it would be a bit more difficult in our markets but I think more effort can be made by boards to look for people outside of the normal group of persons that they look to to be directors . . . .
“People tend to want to have persons on their boards that they know and that they’re comfortable with but you’re finding more and more that companies that really want to add value for their shareholders are looking at the competencies of their directors and trying to diversify as much as possible, not only who is on their board but the skillset of the persons that are on their board,” he said.
Yarde also indicated that he was in favour of more women sitting on local boards. He noted that there was academic and empirical evidence to show that women added value to boards and some jurisdictions were mandating that a certain percentage of each board had to be female.
“For a small market like Barbados, we would want these things to be done by boards themselves. You don’t want to legislate these types of things,” he said.
Yarde added that in light of both international and regional corporate failures, financial regulators in the Caribbean were paying greater attention to corporate governance.?
