In a global landscape marked by uncertainty, geopolitical tensions, technological disruption, climate crisis, new regulations, and rising social expectations, corporate governance has become essential to ensuring the integrity and sustainability of organizations.
To address this, BH Compliance held the webinar “Corporate governance that makes a difference in a complex world,” moderated by CEO Susana Sierra, and joined by three international corporate governance experts: Nichol Garzón, Chief Legal Officer and Senior Vice President of Corporate Development at Glass Lewis; Mauro Rodríguez da Cunha, independent director in various companies and founder of Engage MC; and Andrés Bernal, founding partner of Governance Consultants and co-founder of iDirectores.
Throughout the discussion, the panelists explored how boards must navigate an increasingly challenging environment, addressing topics such as the role of trust in governance, emerging technologies and their risks, ESG, and the particular challenges faced in Latin America.
Some key takeaways:
GLOBAL CORPORATE GOVERNANCE CHALLENGES
- Corporate governance has become highly political, and it is difficult to meet the needs of all clients globally.
- The role of boards has changed dramatically, especially following the pandemic.
- Boards must act as a sounding board for the CEO, overseeing and helping navigate corporate challenges.
- Shareholders now look for proactive, constructive directors capable of understanding today’s complexity.
GOVERNANCE AND TRUST
- Distrust has always existed due to information asymmetry, but today it can be mitigated through greater transparency. Governance helps manage that gap and builds trust by ensuring the right people are on the board.
- There is still a need to foster a culture of transparency; much of what is discussed in the boardroom could be communicated to stakeholders without putting strategy at risk.
- Transparency also includes direct communication with shareholders about risks, priorities, and board strategy.
- Proxy advisors depend on clear public information.
BOARD PRACTICES THAT ADD VALUE
- It is essential to review board composition, promoting diversity and openness to debate.
Relevant diversity is not only gender-based, but also includes diverse experiences, expertise, and backgrounds. - A key tool is the skills matrix, used to assess the competencies required based on the company’s industry, profile, and board needs.
- Through the skills matrix, shareholders increasingly recognize the need for directors with specific expertise and the right qualifications to build a true sounding board—and, above all, the humility to understand that no one has all the answers.
- It’s essential to dedicate sufficient time on the board’s agenda to allow discussions on emerging risks and transformation.
- Training is key for boards to develop real competencies that go beyond what shareholders expect.
LATIN AMERICA: CHALLENGES AND OPPORTUNITIES
- The region is dominated by family-owned businesses with low transparency and weak governance practices; improving these is essential to attract institutional capital.
- Family control can be compatible with strong governance if independent directors have real influence.
- Transformation pressures are also reaching family businesses, forcing Latin American boards to evolve; access to capital is shifting, and that is reshaping governance in the region.
ESG AND SUSTAINABILITY
- ESG criteria must be integrated into corporate strategy rather than treated as isolated or reputational initiatives.
- A sign of real understanding of ESG is having a strategy committee that incorporates sustainability.
Investors are now entering a more “post-ESG” phase—more pragmatic and focused on which practices truly create value.
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In this way, the webinar addressed several topics of great relevance for companies and their boards on how to effectively face today’s complex environment through solid governance.
