Employees make a difference on the Board of Directors
External members of the Board of Directors spend years getting to know Danske Bank. Employees have in-depth knowledge of Danske Bank from the first board meeting. This makes employees indispensable on a board like Danske Bank, says Caspar Rose, researcher on board work. As of 2 February, you must vote on the election of employees to the Board of Directors of Danske Bank.
According to Caspar Rose, who conducts research on board work at Copenhagen Business School (CBS) and has experience from several boards, the answer is clear:
"Employees create value for the business and qualify the decision-making process”.
To understand why the voice of the employees is so important and what they bring to the table as the other members of the board of directors do not, Caspar answers clearly
"Employees bring knowledge about the organisation, customers and culture as external members of the board of directors often spend years achieving. The result is more nuanced decisions”, says Caspar Rose and elaborates:
"Employee-elected members of the Board of Directors can add the nuances that make a difference and they know how decisions affect everyday life. They know the customers, the culture and the consequences. Therefore, their vote on the board is both important and decisive”.
The employees' unique knowledge
Danske Bank is a complex business that requires time to understand.
Caspar Rose points out that employee-elected members of the Board of Directors have an insight that external members often spend years achieving.
"They know the organisation from within, understand the culture and customers as well as internal operating procedures. This means that they can assess how decisions will be received in the business units and whether they will have the desired effect. In financial businesses, this knowledge is particularly valuable. Here you can easily take for granted that all have a high level of knowledge, but the employees contribute with specific experiences from everyday life. This provides a more realistic and objective basis for decision-making”, he says and elaborates:
"Without employee-elected members, the Board of Directors risks having a unilateral picture of reality. The ELT can tell one picture, but employees can add nuances and perspectives that make decisions more robust”.
A strong combination
The combination of elected by the general meeting and employee-elected by the employees members of the board of directors is a good cocktail.
In Denmark, we have a good tradition for this balance, and it should be maintained, according to Caspar Rose, who has experienced boards with and without employee representation.
He says about the strong tradition of employees on boards in Denmark.
"The employee-elected members of the Board of Directors ensure that decisions are made on a broader and more realistic basis . They bring knowledge about the business, customers and the internal consequences of strategic choices. This makes the board stronger and the business more robust. The employees' voice in the Board of Directors creates better decisions and a more subtle understanding of reality”.
Election to the Board of Directors of Danske Bank
As of 2 February, you must vote on the election of employees to the Board of Directors of Danske Bank.
From Finansforbundet in Danske Bank, chairman Kirsten Ebbe Brich and board member Kirsten Hjelm Lund stands for election.
Dorte Bielefeldt and Pia Staal Christensen stand as alternates.
Read more about the election on Headlines
Professional member of the Board of Directors: Employees bring new knowledge and perspectives