Composition of the boards

Abstract

This chapter focuses on the composition of bank foundations, a key element for good governance in nonprofit organizations. We consider some main aspects regarding the number and gender diversity of members belonging to the policy-making and administrative bodies, the people who select them, and the process of designation. Then, in line with a multistakeholder approach, we propose a map of the main bank foundations’ stakeholders and explain how they are involved with governance, underscoring the important relationship among local stakeholders, governance stakeholders, mission stakeholders, and the bank foundations. In particular, we focus on the local stakeholder groups directly engaged in selecting members of the Board of Trustees. Finally, we conclude by considering some issues related to incompatibility and conflicts of interest within boards.