Corporate Board Composition and Directors’ Diversity: A Study on the Banking Sector of Bangladesh

Abstract

This study strives to identify and compare how the banks’ board structures, committee effectiveness and directors’ attributes change across different generations. This study classifies banks in 1 st , 2 nd and 3 rd generations based on the banks’ incorporation and observes board size, independence, meetings, audit committee size and meetings, women’s representation, directors’ academic background and educational level, and their international exposure in the form of international education and professional experience. The results provide a clear generation-wise pattern. It reveals that older banks show more concern for board and audit committee meeting frequencies and directors’ sophisticated academic knowledge, international education and experience as they include more PhD, FCA, FCMA, MPhill and MBA or master’s degree holders’ directors in their boards. Besides, most 2 nd -generation banks achieve a critical mass of women directors. However, newer banks tend to prioritise board independence, implying more emphasis on formal corporate governance set-up. These banks show a lack of nominating highly educated directors and women directors compared to the banks belonging to previous generations. Finally, this study reflects the changing pattern of corporate governance across generations and thereby requires important policy- and regulation-orientated considerations.