Composition and Structure of Boards in the Two-Tier Board Model

Darko Tipurić () and Lana Cindrić ()
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Darko Tipurić: University of Zagreb
Lana Cindrić: University of Zagreb

Chapter Chapter 2 in Two-Tier Boards, 2025, pp 27-48 from Springer

Abstract: Abstract This chapter examines how board composition and structure, particularly size, independence, committees, and diversity, influence board effectiveness. It highlights the trade-offs between small and large boards, noting that while smaller boards promote cohesion and accountability, larger boards provide broader expertise and stronger stakeholder connections. Board independence is presented as a cornerstone of good governance, with independent directors playing a critical role in oversight and transparency. The chapter also emphasizes the importance of board committees in enhancing efficiency and specialization, and discusses how diversity, especially in terms of gender and age, can enrich board deliberation but also introduce challenges that require thoughtful management.

Keywords: Board composition; Board independence; Board diversity; Board committees (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-95746-8_2

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DOI: 10.1007/978-3-031-95746-8_2

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