Self-assessment of the Supervisory Board of an investment fund holding

Assignment

Assessing the Supervisory Board of a majority-stake investment fund holding

Issues : Supporting growth
Services : Leadership Consulting

Context

  • The holding company is a leader in health and wellness
  • Its CFO was taking over from the long-standing Chairman and had to get his bearings as the head of the company
  • The Supervisory Board of the holding company comprised eight members, including four financiers, one physical shareholder, and three independent directors, and had existed for around one and a half years
  • The Chairman of the Board, a fund associate, wanted to enrich the Board’s debates to generate value for the company and ease the new Director into his position

Eurosearch & Associés involvement

  • We provided the Director with support in the form of mentoring to help him decipher the fund’s reactions and become more independent
  • We recommended an 18-month self-assessment process, which was accepted. This consisted in:
    • Holding individual talks with each director
    • Listing each person’s expectations and drawing up a review of operations with regard to 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 discussions and reporting back to the Board to measure progress

Results

  • The preparatory documents were distributed two weeks in advance, so that each person could prepare for the sessions and in order to limit time devoted to the financial reporting
  • The Board planned its in-depth work on strategy, risks, human capital and CSR. It delegated the preparation of each of these files to directors
  • The Board changed its secretary in order to receive a more professional service offered by a different law firm
  • The Board changed its Chairman and enlisted an independent director recognized for his talent and loyalty. The hierarchy of the fund’s Operational Director was therefore transformed
  • The Executive Director thrived and met all requirements. He emerged as the project’s standard-bearer and as a highly reliable manager of this service-based activity