ASX Top 100 HR Study 2007 - Part 2

Author: Craig Donaldson
Date: April 2007
Source: Human Resources magazine
Study Sponsor: Accumulate

Excerpt

Getting HR on board

Many clamour about the need for HR to sit on the board. This is seen largely as a reflection of the level of importance HR is afforded - that a company is willing to take the input of HR seriously at the most senior levels.

In Human Resources magazine's latest study of Australia's top ASX-listed companies, not one head of HR sat on the board of the head company. There was a similar result when we conducetd this survey first in 2003 and again in 2005. HR representation at board level is not necessariy a reflection of HR's importance.

Australian boards tend to follow US models and are principally made up on non-executive rathen than executive directors. This is partly for reasons of independence. In the past, the theory was that the interests of the executive or management are necessarily in alignment with shareholder interests. So an independent board will regulate self-interested behaviour and be more likely to optimise the company's performance. Most companies in Australia's top ASX-listed companies tend to have just on executive board member - the CEO.

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