Even though the pace of change may be frustrating for some, there is a gradual diversification of ownership patterns of SA companies, primarily to pension funds and to a lesser extent by black economic empowerment companies away from "old wealthy families".
Coupled with these changes has been a change in boardroom composition. In fewer instances, changes in boardroom leadership have followed suit with more black directors at companies such as Group Five, Aspen, MTN, Sasol, Standard Bank and Nedbank, to mention a few.
Galvanising this shift have been strong calls for greater economic transformation, greater independence of boardroom leadership, the impact of the King II code on corporate governance - and more active shareholders.
As SA companies' weather the world economic recession and downturn, one senses a humility not experienced before. There is a realisation that even in "trusted and experienced hands", companies fail.
The begrudging, mindless "tick box" compliance mind-set of yesteryear is fast being replaced by a sense of the value in good company governance.
A recent publication by Accountancy SA points to a staggering 90 JSE-listed companies' boards being led by executive chairmen.
Of the companies ranked in the Top 100 for the past five years, 18 have appointed senior independent directors. While their exact role is not defined, they are seen as a bulwark of board independence by many shareholders.
There is an acceptance of the need for a more independent board leadership. This trend is expected to increase in the next reporting period.
Without a doubt, this economy will continue to pay a huge price for past sins as there is too small a pool of board directors with company operational skills to draw from, even though executive skill is different from that required for directing. There is a need to broaden and diversify the selection pool by training more independent directors through a chartered director development programme.
Boards are more likely to independently evaluate their performance and, as is happening in the UK, publish the areas where their performance should improve - and thereby entrench their moral authority to lead. - Thina Siwendu
- Siwendu is director of Siwendu & Partners