Generalist or specialist? The optimal composition of the supervisory board in times of change
The basis for new financial expert training
The composition of the supervisory board is a recurring topic of discussion: How much expert knowledge is actually needed and when is a generalist the better choice? The answer is as simple as it is nuanced: It depends.
Generalists and specialists: the right balance
Joint and several liability clearly speaks in favour of appointing generalists to the supervisory board who have broad knowledge and an overarching perspective. However, practice shows that specific specialist expertise is indispensable in committee work. Experts are needed here in order to be able to hold strategic discussions with the Management Board on an equal footing and make well-founded decisions.
Financial expertise as a key competence
Special attention is paid to financial expertise, which is explicitly required by law: Public interest entities must appoint at least two so-called financial experts. The German Corporate Governance Code (GCGC) clearly defines this expertise: professional experience and in-depth knowledge are required. These are skills that cannot be learnt through training alone, but require a distinct culture of expertise.
However, caution is also required here: Expertise should not lie exclusively in the hands of a few experts. Every member of the supervisory board should have a basic understanding of risks and opportunities – especially in the area of strategic accounting. In the case of listed companies, this includes in-depth knowledge of IFRS that goes beyond superficial buzzwords.
Qualification: The key to future-proof work on the supervisory board
The continuous qualification and skills development of the supervisory board is becoming increasingly important. To meet these requirements, innovative and practical training formats are indispensable.
One example of this is the Mini MBA for Audit Committee Members, which we have developed in collaboration with Deloitte. This comprehensive programme builds on the “Qualified Supervisory Board” and delves deeper into topics such as risk management, accounting and auditing. Participants not only gain in-depth specialist knowledge, but can also complete the course with an optional examination to become a “Specialised Supervisory Board Member on the Audit Committee” of Deutsche Börse.
New challenges in accounting
The rapid changes in accounting also pose new challenges for CFOs. The linking of ESRS (European Sustainability Reporting Standards) and IFRS brings with it a completely new dimension of financial reporting, which places demands on companies and auditors alike. The lack of experience in this area makes the exchange of information all the more important.
To meet this need, we have joined forces with Deloitte to organise an exchange of experience for CFOs and audit committee chairs. Supplemented by individual training sessions, this format not only serves to impart knowledge, but is also an admission criterion for the “Financial Expert” examination at Deutsche Börse.
Conclusion
The requirements for the composition and qualification of the Supervisory Board are constantly evolving. A balanced mix of generalists and specialists is crucial in order to meet the diverse challenges. At the same time, the focus is shifting to continuous further training – and here we offer the optimum support with our innovative formats to make you and your board fit for the future.