ASX CGP 4th Edition · AICD Board Composition Guide 2024

Board Composition
Gap Analyser

Map your current board's skills, diversity, and experience against your strategic requirements. Identify composition gaps, succession blind spots, and the capabilities you need for the next three years.

64%
of directors say their skills matrix needs refreshing (AICD DSI 2026)
40%
ASX 200 target for female board representation
3–5 yr
strategic planning horizon boards should composition-plan against
Survey Evidence: AICD Director Sentiment Index 2026 — 64% of directors believe their board needs to refresh its skills matrix to better reflect the strategic demands of the next 3–5 years.
Board Composition Gap Analyser — Assessment

Answer 8 questions to analyse your board's current composition against strategic requirements. Results will identify skills gaps, diversity shortfalls, and succession priorities — benchmarked against ASX Corporate Governance Principles 4th Edition.

Question 1 of 8 — Skills Matrix

Does your board maintain a current skills matrix that is reviewed annually against your strategic plan?

Question 2 of 8 — Strategic Skills Alignment

How well do your board's current capabilities match your organisation's strategic priorities for the next 3–5 years?

Question 3 of 8 — Gender Diversity

What is the gender composition of your board?

Question 4 of 8 — Independence

What proportion of your board is genuinely independent (as defined by ASX CGP Principle 2)?

Question 5 of 8 — Director Tenure

Are there directors on your board who have served for more than 9 years without a documented independence reassessment?

Question 6 of 8 — Succession Planning

Does your board have a documented succession plan for the Chair, committee chairs, and key skill positions?

Question 7 of 8 — Recruitment Process

When your board recruits a new director, what is the process?

Question 8 of 8 — Board Effectiveness Review

How recently has your board conducted a formal board effectiveness review (internal or external)?

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Analysing current composition…

Board Composition Gap Report

Overall Governance Maturity Score
43 / 100
Based on your 8-question assessment
DEVELOPING — Strategic composition gaps identified across multiple dimensions
Domain Scores
Skills Matrix Currency40%
Skills matrix exists but not recently reviewed. Alignment to current strategic priorities uncertain.
Strategic Skills Alignment35%
Significant gaps between board capability and the organisation's 3–5 year strategic requirements identified.
Diversity & Inclusion45%
Gender diversity below 30% target. Cultural diversity and generational mix not formally assessed.
Director Independence55%
Majority independent but annual assessment not formalised. Tenure review recommended for long-serving directors.
Succession Planning30%
Chair succession not documented. Committee chair succession informal. Pipeline of identified candidates absent.
Recruitment Rigour50%
Nominations Committee exists but process relies partially on existing networks. Independent search not standard practice.

Recommended Governance Frameworks

Immediate

ASX CGP Principle 2 — Board Composition

Conduct a formal assessment of director independence against ASX CGP Principle 2 criteria. Review tenure of all directors serving more than 6 years. Publish updated disclosure.

30 Days

AICD Board Skills Matrix Template

Use the AICD Board Composition Guide to build a structured skills matrix. Map current director capabilities against 12 core competency categories. Identify gaps against your strategic plan.

60 Days

Board Diversity Target-Setting

Establish measurable board diversity targets across gender, cultural background, and age/experience. Align targets to ASX CGP disclosure requirements and AICD diversity principles.

Prioritised Action Roadmap

1

Refresh the board skills matrix against your strategic plan

Engage the Nominations Committee to rebuild the skills matrix from scratch using your 3–5 year strategic plan as the brief. Map current directors. Identify priority gaps for next appointment.

⏱ Target: 30 days · Owner: Nominations Committee Chair
2

Develop a board succession plan with candidate pipeline

Document succession timelines for Chair, Deputy Chair, and each committee chair. Identify a pipeline of 2–3 potential candidates for each priority role. Review annually.

⏱ Target: 45 days · Owner: Nominations Committee + Chair
3

Conduct a formal independence review of all directors

Formally assess each director against ASX CGP Principle 2 independence criteria. Review tenure of all directors serving 6+ years. Document findings and update the register of interests.

⏱ Target: 60 days · Owner: Board Chair + Company Secretary
4

Commission an external board effectiveness review

Engage an independent governance specialist to conduct a board effectiveness review. Include assessment of: board dynamics, committee effectiveness, meeting quality, and information flows.

⏱ Target: 90 days · Owner: Board Chair
5

Establish a structured director recruitment process

Develop a Nominations Committee charter with a formal recruitment process: skills brief, independent search, candidate assessment criteria, and referee process. Move away from network-only appointments.

⏱ Target: 90 days · Owner: Nominations Committee
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