The Dutch Management and Supervisory Bodies Act that came into effect on 1 January 2013 drastically changed the dynamics of searching for new supervisory directors. The mandatory limits on the number of commissions a person can hold has profound consequences for both the re-appointment and new appointment of supervisory directors. Many luminaries from the top 100 lists must now cut back on the number of commissions they hold and cannot assume any new supervisory positions in the Netherlands. These people have time on their hands and can spend more of it on their existing portfolio. But it is not yet clear whether that is a good thing. Will this lead to too much interference with management or, rather, to more careful analysis and supervision?
'Professional supervisory directors’ are seeing their earnings model disappear. The old boys (and girls) network is deadlocked. Many of today's prominent supervisory directors are feeling shut out in terms of what they have to contribute to corporate Netherlands. There is upward pressure on the compensation paid to supervisory directors in the corporate world. This had already doubled over the past ten years, and will quickly rise even higher. And the difference with the compensation for supervisory positions in the non-profit sector is becoming ever more pronounced.
One positive sign is that the arsenal of good candidates is growing considerably. Supervisory directors are no longer sought out as unique candidates from a familiar network of business relationships, but selected based on their knowledge and experience. As such, in the eyes of Maes & Lunau, they are participants in the classic executive search process.
Maes & Lunau Executive Search
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