Networks over intellect: Boards admit diversity is 'not a priority' for 20% of firms

One in five board members says personal networks continue to dominate appointments.

Singapore boards face structural constraints in board capacity, candidate availability, and appointment processes that limit progress on diversity, according to a joint report from the Council for Board Diversity and Egon Zehnder.

The study finds that limited board seat capacity and a lack of appropriate candidates each account for 35% of responses as key barriers, reflecting that available seats and constrained talent pipelines restrict the scope for increasing board diversity.

It also reports that 20% of Singapore board members say diversification is not a current priority.

A further 16% point to the absence of clear diversity targets or strategy, indicating uneven integration of diversity into board agendas.

The study also identifies process-related constraints, including reliance on personal networks in board appointments and limited support from search and succession planning systems.

It reports that 5% of respondents cite search process limitations, 3% cite candidates declining offers, and 2% cite succession planning issues.

It states that boards often prioritise technical expertise, strategic alignment, and immediate business needs before diversity considerations.

“Board appointments are often less about intellect and more about networks,” said Chew Gek Khim, chair of Straits Trading Company and Deputy Chair of Tan Chin Tuan Pte Ltd, adding that familiarity within networks narrows the candidate pool.