Self-assessment of the Supervisory Board of a subsidiary of an investment fund

Assignment

Assessing the Supervisory Board of a subsidiary of a majority investment fund

Issues : Supporting growth
Sectors : Others

Context

  • The company is a leader in the health and wellness sector
  • Its CFO is taking over from the long-standing Chairman and has to get his bearings as the head of the company
  • The Supervisory Board of the company comprises eight members, including four financiers, one physical shareholder and three independent directors, and has been set up one and a half years ago
  • The Chairman of the Board, a fund partner, wants to expand topics discussed on the Board to create value for the company and help the new CEO to succeed in his new position

Eurosearch & Associés involvement

  • The General Manager is supported through mentoring to help him understand the fund’s reactions and become more autonomous
  • An 18-month self-assessment process is proposed and accepted. This consists of:
    • Holding individual meetings with each director
    • Listing each person’s expectations and checking Board ways of working against best practices
    • Proposing to the Board a progress plan and silent observation as a follow-up after six months
    • Conducting a second review via individual meetings and reporting back to the Board to measure progress

Results

  • The preparatory documents are distributed two weeks in advance, so that each person can prepare for the meetings thus reducing the time devoted to financial reporting
  • The Board plans its in-depth work on strategy, risks, human resources and CSR. It delegates the preparation of each of these files to directors
  • The Board changes its Corporate Secretary in order to get a more professional service through a different law firm
  • The Board changes it’s Chairman and hires an independent director known for his capabilities and loyalty. The report of the fund’s Operational Director is therefore changed
  • The General Manager actually takes over and meets all requirements. He emerges as an actual leader and as a highly reliable manager of this BtoB services activity