Digitization on Boards: Amrop's 2016 Report
As the tide of disruption and digitization sweeps into every sector, the flow of digital know-how into Executive Management Teams - CDOs, CIOs and CTOs - has stepped up. This report by Amrop maps the digital competencies of the Boards of the 110 largest stock-listed companies in 11 countries in Europe and the US, and the backgrounds of 1280 Non-Executive Directors.
Digitization on Boards is Still in its Infancy.
- 36% of Board Members in Technology Companies Have Digital Competencies.Unsurprisingly, technology posts the biggest proportion of digital NEDs. Finland scores highest, France, lowest. The US ranks third-lowest (US tech companies tend to seek financial and consumer competencies). 23% of tech/digital competencies are in the form of Employee Representatives.
- 5% of Board Members in Non-Technology Companies Have Digital Competencies.Denmark and Spain rank lowest (2%), Sweden ranks highest (8%).
- Digital-Critical Sectors are Under-Equipped.Consumer Goods &Retail (5%), Financial Services (4%) and Life Sciences (7%), have strikingly low proportions of digital profiles in the Boardrooms.
- Financial Competencies Are 3 Times More Prevalent Than Digital. In non-Financial Services companies, the representation of financial competencies is at 16% (vs. 5% for digital and Consumer).
- Only 4 Listed Companies Have An Official Technology/Digital Committee.Committees can help Boards gain critical insights into digital - and be at the forefront. Their absence means another route into the digital ecosystem is missing. Nominations Committees have a critical role to play.