HONG KONG, July 17, 2014 (GLOBE NEWSWIRE) -- A focus on compliance at the expense of corporate strategy may be limiting the performance of boards in Asia Pacific according to 'The Heidrick & Struggles Asia Pacific Corporate Governance Report 2014', which Heidrick & Struggles (Nasdaq:HSII), a premier professional services firm serving the talent and leadership needs of top organizations globally, released today.
An infographic accompanying this release is available at http://media.globenewswire.com/cache/10188/file/27659.pdf
Drawing on data from 170 publicly listed companies on stock exchanges across six countries in Asia Pacific – India, China, Hong Kong, Singapore, Australia and New Zealand – and surveying more than 165 board members, The Heidrick & Struggles Asia Pacific Corporate Governance Report suggests that high-performing boards focus on four key capabilities: people, leadership, vision and innovation. Several key drivers support these four core capabilities including a balance between executive and non-executive directors; regular meetings; clear criteria for director replacement; identification of opportunities to improve the board, gender and ethnic diversity; and a sufficient number of independent directors to provide a balanced view.
Directors rated 'vision' as the most important capability in the survey. "Directors need a clear strategy that is both shared and understood around the table. Vision should directly tackle shareholder value, benefit to the community and long-term sustainability," said Steve Mullinjer, Regional Leader, Asia Pacific, Heidrick & Struggles. "It is encouraging to see that gender diversity on boards continues to improve, as women made up 11.8% of Asia Pacific boards in 2013, up from 8.8% in 2011. Gender figures still lag behind Europe (17% for 2013), but indicates that boards across Asia are recognizing the importance of a diverse mix of experience and skills."
"In places like Hong Kong and Singapore where many listed companies are family-owned, boards should regularly benchmark themselves against their peers to identify key differences that impact performance and share price," said Harry O'Neill, Managing Partner, Asia Pacific, Heidrick & Struggles. "With the increasingly stringent new legal compliance rules and stock exchange guidelines, board meetings nowadays tend to focus heavily on compliance issues. However, a forward-thinking board should be able to assess the resilience of a business as well as its ability to innovate, while understanding the risks involved in innovation," said Harry.
Key Regional Findings:
"The chairman plays a pivotal role and should always be thinking at least five years into the future. Directors on the other hand should be thinking about 18 months to two years ahead. Also, it is the chairman's job to ensure balanced board composition is achieved. A well balanced board can help to effectively steer a business through different challenges and opportunities," Steve concluded.
For Our Most Recent Heidrick & Struggles Corporate Governance Reports:
About Heidrick & Struggles:
Heidrick & Struggles International, Inc. (Nasdaq:HSII) is a premier provider of senior-level Executive Search, Culture Shaping and Leadership Consulting services. For more than 60 years, we have helped our clients build strong leadership teams through quality service, deep insights and our relationships with talented individuals worldwide. Today, Heidrick & Struggles' leadership experts operate from principal business centers in North America, Latin America, Europe, Asia Pacific, Africa and the Middle East. For more information about Heidrick & Struggles, please visit www.heidrick.com.