The importance of the independent director's "right" positioning
What does "independent" mean for an administrator?
The difference lies in their positioning. The Independent Director prioritizes the interests and long-term viability of the company over those of its shareholders. Furthermore, they must under no circumstances be dependent on the fees received for this role.
This is why transparency in remuneration is essential. Too low a salary inevitably leads to insufficient time spent, while too high a salary threatens independence.
What is the profile of the ideal independent administrator?
Years of experience make all the difference! They allow him to know the business world perfectly and to maintain the right distance during crises while keeping a point of view that he considers just.
His area of expertise, skills, and experience must complement and enrich the existing knowledge of the board of directors and align with the company's challenges. Thanks to his independence, he will always be able to offer constructive feedback to the CEO's decisions. His role, we reiterate, is to ensure the company's long-term viability.
In a crisis, he is a pillar to rely on. He will know how to take a step back to avoid being overwhelmed and thus be able to act.
What about his responsibility?
Like other members of the board of directors, the independent director is liable if irregularities, concealments or fraud are proven.
What makes the difference?
An independent director must stay informed of all the latest news, both what is known and what is not yet known. Their daily activities then become a valuable asset to the board of directors.
Having faced different realities, he is able to anticipate and advise leaders in the best possible way.
At Apia, we offer our members (independent directors) training and dedicated time for discussion in complete confidentiality. This ensures our members stay informed about the latest trends and current issues, enabling them to bring real added value to their boards.
To maintain the excellence of our independent directors, we have strict membership criteria.
Furthermore, our members are, or have all been:
- Business owners of a small or medium-sized enterprise (SME)
- SME administrators or professional administrators
- Financially independent
- Trained while agreeing to further develop their skills in the role of independent administrator
For us, good governance is the key to survival.
Are you looking to add a new member to your board of directors? Are you unsure who to choose?
Want to be sure of its impartiality? Contact us! We'll introduce you to our members.
APIA Swiss Team