Focus Interview - Revitalization of the Board of Directors in the World: Quality Independent Directors Are Required
Mr. Yuji Mizuno
The Nikkei Business Daily article, “Focus Interview - Revitalization of the Board of Directors in the World: Quality Independent Directors Are Required,” interviewed Russell Reynolds Associates CEO
on his thoughts about board revitalization. The article is excerpted below.
As part of the government’s growth strategy summarized in June, measures are taken to strengthen corporate governance including improving the quality of independent directors. The reform of the Board of Directors is key to influence managers to increase profitability.
We asked about the revitalization of the board in the world to Mr. Clarke Murphy, CEO of Russell Reynolds Associates, a leading human capital consulting firm, from New York.
Do you see any changes in the abilities and qualities required of independent directors?
"It is an important role for independent directors to develop a CEO succession plan and to advise whether the strategy adopted by the management is correct or not. They must have adequate competencies to think about the new risks that companies may face and how to overcome them - not only to respond to the progress of globalization and digitization, but the preparation against cyber-attack is also necessary.”
“In the past five to six years, cases that require specialized expertise are increasing rapidly. For example, the methodology of cyber-attacks changes quickly, and public companies such as utility companies are vulnerable to attacks. Board of Directors needs to give advice to the companies to take adequate measures, and implement risk management."
What is the expertise required of an independent director?
To read the full article in its original Japanese, click here.