Board skills matrix

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Market Turnover

Table: Example board skills matrix

Skills Area

Description
(Note (b))

Importance
(Note (c))

Adequacy
(Note (d))

Plans to address gaps / expand skills

Strategy

Ability to identify strategic opportunities and threats, whilst developing and implementing plans to achieve corporate objectives

Leadership

Ability to lead corporate teams and implement plans and policies

Industry knowledge and experience (Note (a))

An understanding of the company’s business daily operations, market development, competitors, technology and innovation

Financial literacy / business acumen

Ability to read and comprehend corporate accounts, financial materials and financial reporting requirements

Risk management and compliance

Ability and experience in implementing, managing or overseeing risk management and internal control systems for legal and regulatory compliance

People management experience

Experience at a senior level with responsibilities for people management and successful implementation of change

Diversity (e.g. age, gender, culture)

Contribution to board diversity in terms of age, gender, cultural background etc.

Emerging topics (e.g. artificial intelligence)

Understanding and knowledge of emerging topics to ensure that the company is forward-thinking

Qualifications

Formal qualifications in relevant fields to assist the board in its decision-making, for example, accounting / finance, economics / business, law

Purpose

A board skills matrix should display the board’s collective experience, skills, qualifications and expertise, and connect these with the issuer’s long-term strategy and particular goals, including its diversity targets. While the matrix is not intended to single out individual directors, it should allow shareholders and other stakeholders to understand the mix and adequacy of the board’s skills and assess the alignment with the issuer’s objectives.
This mapping exercise enables the issuer to identify, in particular, any gaps in existing board skills for the purpose of any planned expansion or change in the issuer’s objectives. This provides useful insights to the nomination committee (or the board) to consider board refreshment and succession planning, or any enhancement of the existing skills and qualifications of the board.

Disclosure requirements (with example skills matrix)