Digital Experience: The Main Focus For Advisers
Analysis - Only 7% of Ibex board members have a digital background according to a study conducted by Russell Reynolds, which identifies challenges for good governance.
The Expansión article, "Digital Experience: The Main Focus For Advisers," featured research from our Spanish governance study. The article is excerpted below.
Experience is one of the highest valued attributes for a member of a board of directors. The digital revolution has made companies appreciate what expertise in the field of digitalization and cybersecurity can provide a business. However, only 7% of Ibex board members have digital experience according to a study conducted by Russell Reynolds. The executive search firm has analyzed the corporate governance of companies from the Spanish stock market's selective index. This is the first time that a study on these characteristics has been conducted in Spain, which is similar to that which is being done in countries such as Germany with the Dax selective, in France with the CAC 40, or in Switzerland with the SMI.
The report, which seeks to obtain a global view of compliance with CNMV recommendations so that the challenges that have yet to be faced can be identified and all good practices can then be included in its corporate governance, shows that, from the 456 board members included in the index at the end of January, only 30 had digital experience. It is understood that a board member has this experience when it has managed the formation and launch of a digital business; has developed a digital transformation process for products or businesses; or has experience in cybersecurity or information, or as a technology or information director.
Russell Reynolds references a study conducted by the Massachusetts Institute of Technology (MIT), which surveyed 40,000 US advisors and found a material correlation between digital expertise on boards and financial performance in organizations. Boards with at least three members with digital experience saw a benefit margin 17% greater than those with two or fewer; 30% more revenue, 34% greater return on assets, and a 34% hike in capitalization.
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