Title: The effectiveness of supervisory boards: an exploratory study of challenges in Dutch boardrooms

Authors: Stefan C. Peij; Pieter-Jan Bezemer; Gregory F. Maassen

Addresses: Lectorate Boards and Governance, Inholland University, Posthumalaan 90, 3072 AG Rotterdam, The Netherlands. ' School of Accountancy, Queensland University of Technology, George Street, G.P.O. Box 2423, Brisbane, QLD 4001 Australia. ' Department of Strategic Management and Entrepreneurship, RSM Erasmus University, Burgemeester Oudlaan 50, 3062 PA Rotterdam, The Netherlands

Abstract: Triggered by highly publicised corporate scandals, changing societal expectations and the collapse of financial markets, the roles of boards of directors have changed significantly in safeguarding the interest of shareholders and other stakeholders. Yet, relatively little is known about contemporary challenges non-executive directors face and whether their boards are well-equipped for their new tasks. Based on self-assessment reports by supervisory boards, a survey and interviews with supervisory board members, this paper investigates the challenges non-executive directors face in the Netherlands, particularly after a decade of corporate governance reform. Non-executive directors' inadequate role in scrutinising executive directors' performance, information asymmetries and dysfunctional working relationships between executive and non-executive directors are among the greatest challenges indicated by non-executive directors on Dutch supervisory boards. The paper discusses several implications for scholars and practitioners and provides a unique insight in boardroom dynamics.

Keywords: supervisory board of directors; boardroom challenges; board roles; board skills; corporate governance; boardroom; group dynamics; The Netherlands; supervisory boards; non-executive directors.

DOI: 10.1504/IJBGE.2012.050041

International Journal of Business Governance and Ethics, 2012 Vol.7 No.3, pp.191 - 208

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 25 Oct 2012 *

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