The evolution of FTSE 250 boards of directors: key factors influencing board performance and effectiveness

Although the Combined Code (Financial Reporting Council, 2003, 2006) dearly identifies the roles and responsibilities of PLC board members, current academic literature offers little guidance to FTSE 250 boards - many of whom are managing different issues compared with their FTSE 100 counterparts including high corporate growth, existing founder and/or family board members, and/or newly formed boards - on ways in which they can improve the quality of decision-making, increase individual board contribution, and enhance overall board performance and effectiveness. This paper attempts to outline the key issues faced by board members, particularly nonexecutive directors, serving on FTSE 250 company boards with regard to three distinct roles - strategy, succession planning and risk management - and examines the relevant influences on board members derived from corporate lifecycle, board structure, existing process and board culture which affect board performance and standards of corporate governance. Its conclusions draw on the author's previous research on non-executive contribution (Long, 2004) and her recent experience of reviewing performance and effectiveness of FTSE 100 and 250 boards of directors through Boardroom Review.