Independent supervision
Adequate and independent supervision is necessary to ensure that board executives serve the longer terms interests of the company and its stakeholders. Generally, the members of the supervisory board should each have their own independent views. When assessing individual board members, their suitability and their independence should be taken into account.
- This assessment of independence should weigh up each individual’s industry experience and their past and current links to the company. The degree of independence supervisory board members have may not always be compatible with their capabilities.
- Robeco observes that definitions of independence vary from one jurisdiction to another and that these definitions reflect different, sometimes regional, approaches to corporate governance.
- Companies should disclose their own definitions of independence. Compliance with any applicable legislation should form the minimum standard for such definitions.
