‘Reputational risk’ fears on State boards – IoD
Three out of five directors see personal or reputational risk as the main deterrent to being on a State board, according to a new survey by the Institute of Directors (IoD) Ireland.
The survey found, however, that just over 70% of directors would still consider applying for a position on a State board.
Almost three-quarters of the 382 business leaders surveyed said that the Code of Practice for the Governance of State Bodies had been effective in supporting good corporate-governance standards in State organisations.
A similar number also said that the code had improved governance standards since its revision in 2016.
Review
Caroline Spillane (CEO, IoD Ireland) stated that several directors had called for a review of the code’s oversight, accountability, and implementation.
“Directors also expressed the desire for the code to be revised to reflect the latest in governance developments,” she added.
“There were also concerns raised on the recruitment process to State boards, in respect of the relevant experience and skills,” Spillane stated.