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Navigating Dynamics Between the Supervisory and Management Boards

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

Chapter Chapter 4 in Two-Tier Boards, 2025, pp 79-101 from Springer

Abstract: Abstract This chapter explores the relationship between supervisory and management boards in the two-tier governance model, emphasizing the need to balance oversight and collaboration. It highlights how tensions, information asymmetries and power imbalances can lead to relational risk and weakened trust. The chapter outlines how board dynamics should evolve across organizational life cycle stages and introduces mechanisms to rebalance power, such as clearly defined roles, transparent communication, and the involvement of a corporate secretary. It also analyzes how trust, both between and within boards, enhances governance effectiveness, while excessive trust or control can undermine decision-making. Finally, the chapter focuses on the board chair’s pivotal role in fostering collaboration and managing stakeholder engagement.

Keywords: Supervisory–management board dynamics; Board power balance; Trust-building in governance (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_4

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DOI: 10.1007/978-3-031-95746-8_4

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