Expertise Requirements in the Nomination Process of Board of Directors in Listed Companies

This article explores the critical importance of board expertise in the nomination process of directors within listed companies, and the context of European corporate governance. It examines statutory provisions, corporate governance codes, and company-specific guidelines, emphasizing the legal obligations to formulate and disclose board expertise requirements as mandated by recent EU directives. An empirical and comprehensive analysis of Finnish listed companies' shareholder nomination board charters identifies key areas of collective and individual expertise. The study reveals a predominant focus on traditional competencies, while emerging areas like ESG and digitalization are less emphasized. The findings underscore the evolving demands on board expertise, driven by regulatory changes and the need for enhanced corporate governance practices to meet business demands.