Last week, Dr Sharbanom Abu Bakar spoke about her board journey.
She talked about the data behind sourcing board talent, revealing that 73% of board members are sourced through personal networks. This reliance on networks can limit access to qualified candidates, particularly women and under-represented groups.
Dr. Sharbanom was speaking at the recently concluded Board Awareness Program: Women in STEM: Power Up! event organised by the 30% Club Malaysia, Tenaga Nasional Berhad and MyWiE.
She also highlighted the key selection criteria for board positions, sharing valuable insights on how candidates are evaluated.
The top board selection criteria include industry expertise (85%), personal network referrals (71%), strategic insight contributions (60%), regulatory adherence (45%), listed board experience (37%), shareholder nominations (14%), and risk/integrity records (2%). These findings highlight the emphasis on industry-specific expertise and personal networks in shaping board composition.
While Institute of Corporate Directors Malaysia (ICDM) key observations on board positioning and selection for aspiring board members reveal the following:
πππ«π ππππ ππ π πππ§π π: Companies typically prioritise candidates aged 40 to 55 for board roles, but individuals over 60 remain valued. However, fully employed candidates receive mixed acceptance within PLCs.
πππππ©ππ’π―ππ§ππ¬π¬ ππ¨ π
π’π«π¬π-ππ’π¦π ππ’π«ππππ¨π«π¬:Β Some boards are more open to appointing first-time listed directors, influenced by their remuneration structures.
πππ₯π’ππππ’π¨π§ π¨π ππ§πππ«π§ππ₯ πππ§ππ’πππππ¬:Β Increasingly, companies seek independent validation of their internal candidates by benchmarking against ICDM-matched candidates.
ππ¨ππ«π ππ€π’π₯π₯π¬ ππππ«π’π±:Β The evaluation of board candidates now spans three critical angles – Must-have skills, emerging skill sets and unique value propositions.
Candidates with multi-disciplinary expertise, such as in accounting and sustainability, hold a competitive edge. These observations highlight the evolving expectations for board candidates, with a growing focus on diverse skill sets and strategic validation processes. Such insights provide a
roadmap for strengthening boardrooms with future-ready leadership.
Dr. Sharbanom said according to Malaysian Board Practices Review key skills and competencies needed to enhance board effectiveness include digital, ESG, and human resources expertise, which are identifies as areas for growth, with over 40% of boards needing improvement.
Core competencies such as strategy, governance, and industry experience remain strong, but fine-tuning is essential to stay future-ready while marketing, branding, and business development are increasingly critical for driving innovation and resilience.
