When a corporate governance consultant in Canada designs effective governance practices that meet the Board of Directors’ needs, it will positively impact the long-term performance of the corporation. Here are 5 major roles of a corporate governance consultant in Canada which, when performed optimally, will benefit an organization.
1.Perform Board evaluations to create a panel of strong and qualified Directors
The ideal characteristics of a Board include knowledge, relevant expertise, qualification, competence, ethics, integrity, diverse backgrounds, differing skill sets, and adequate time to commit to their duties.
Being a corporate governance consultant in Canada, one needs to identify the gaps between the current members of the Board and the ideal characteristics and qualities each member should possess. While creating the Board, the consultant should keep in mind that the majority of the directors should be an independent entity from management.
2.Define individual Roles and Responsibilities
It is necessary to establish a clear set of rules amongst the Board, Chair, CEO, Executive officers, and management. This is one of the most vital roles of a corporate governance consultant in Canada.
Governance consultation in Canada helps in creation of written mandates for setting out duties, roles and responsibilities of each member of the Board. This also includes creating a sub-group of directors and delegating certain responsibilities such as audit, nomination, compensation, etc. to them.
The corporate governance consultant in Canada also drafts written position descriptions for the Chair, the CEO, the directors, and the executive officers ensuring to specifically separate the roles of the Chair and the CEO. The Chair leads the Board whereas the CEO leads the management.
3.Elevate ethical dealings and integrity
A general culture of integrity in business and compliance with rules and policies of the organization is critical for any Board. The corporate governance consultant of Canada should take the following steps to cultivate this culture:
•Implement a conflict of interest policy whereby a code of conduct setting is made to focus on the organization’s requirements and a report is generated to deal with non-compliance.
•Appoint someone to oversee and manage these policies and procedures.
4.Prepare compensation packages post performance evaluations
The Board evaluations in Canada are generally followed by preparing compensation packages of each member of the Board.
The Director’s compensation package should be designed such that it would attract suitable candidates whereas the compensation packages of executive officers (including the CEO) should be designed by setting up performance targets and tie compensation to their performance evaluations.
5.Evaluate the effectiveness of risk management system
A corporate governance consultant in Canada should also engage in the evaluation process of the organization’s risk management system for the identification and assessment of all types of risks such as financial, reputational, operational, environmental, industrial, and legal.
1 Year Ago, Tuesday, February 28, 2017, 05:22:46