Topic - Governance: Composition of Board
During one of our frequent meetings with a large automaker, we probed the composition and credentials of its current board of directors. In particular, we noted the absence of significant experience in the technology sector. This was a cause of concern given the huge investments that the automaker was making in the development of autonomous and electric vehicles, connectivity and new mobility solutions. Several months later, a new member was elected to the board, who had worked in a senior position for a technology company. We revisited the matter with the company to inquire whether our feedback was the catalyst for their selection of this board member. They responded that it was a combination of our inquiry as well as similar feedback from other asset managers. Since this exchange, we have continued to provide feedback regarding the composition of their board.