Two-Tier Boards: Exploring the Dynamics of Supervisory and Management Boards in Corporate Governance

This book explores the unique structure and function of the two-tier board model, a prevalent corporate governance framework in many European companies. This model separates supervisory and management boards, each with distinct roles and responsibilities, ensuring accountability and effective oversight. The book begins with an introduction to two-tier governance and its theoretical underpinnings, then delves into the composition and structural factors influencing board effectiveness, such as size, diversity, and the role of committees. It addresses the nuances of boardroom dynamics within and between the supervisory and management boards, highlighting the importance of leadership, trust, and conflict resolution. The final section focuses on board evaluations, emphasizing the need for behavioral insights to optimize board performance. This book will be of great interest to scholars and students of corporate governance and strategic management, as well as a useful resource for practitioners seeking an advanced guide to understanding and improving two-tier board operations in corporate settings.