Corporate board failure in Zimbabwe: Have non – executive directors gone to sleep?
The review focuses on board failure especially in the developing world, and in particular, Zimbabwe. The review asks pertinent questions: Why are boards failing? How are boards populated? What are the characteristics that determine selection to the board? Who selects directors? Research Findings / Insights: The review establishes that there is need for a corporate governance code and awareness of corporate governance practices in Zimbabwe. Directors are usually selected through the influence of the CEO and such directors have weak oversight on the performance of the CEO. Some characteristics that determine director selection are gender, age, educational qualifications, experience and financial expertise. Theoretical / Academic Implications: Directors are stewards who have to be accountable to all stakeholders. Practitioner / Policy Implications: There is need to establish how directors are selected in light of the high rate of company and board failures. That directors are also chosen by the CEO is worrying. The selection process should yield capable, independent and diverse directors who can satisfy the expectations of a wide spectrum of stakeholders.