Leading a Board of Directors in France: Conducting a Grand Orchestra

The work of a board chair in France is heavily influenced by the half-century-old tradition of combining the chair and CEO positions in an almighty “PDG” role. The transition to a dedicated professional chair as a generally accepted standard has accelerated in recent years, but has not yet become the norm. Effective chairs in France recognize the complex web of company stakeholders and the need to understand and balance their interests in order to ensure the long-term sustainable development of the company, which in the end is the main purpose of the boards they chair. Chairs take on four principle roles: leading the board; interacting with the CEO and management; representing the board in relationships with shareholders and stakeholders; and ensuring that the whole governance system functions properly. They are committed to their boards, but keep a certain distance from their companies; they protect their own independence and the independence of their boards; they are patient with group decision-making and let the discussions flow; yet they use authority when the debate becomes dysfunctional. Effective chairs listen well, are modest and leave the room for the CEOs to shine in public. They combine a strategic mindset with good company knowledge but stay out of operational issues. They delegate the financial side of shareholder relationships to the management and concentrate on governance. Effective chairs support their CEOs by mentoring them, serving as their sounding boards, providing “air cover” and opening doors for them. In the next decade the separation of the chair and CEO roles will accelerate in France and by the end of the decade the PDG will become an exception rather than the rule. Chairs of French boards will spend more time on two important issues – effective governance and global challenges. As orchestrators of the governance system, they will work hard on integrating environmental and social issues into the agendas of boards and CEOs, while making sure that their companies understand global trends and reflect them in their missions, strategies and operations. In the years following the COVID-19 pandemic risk management will remain one of the top priorities – and chairs will organize the process of rethinking it and finding more agile ways to identify and mitigate risks. The recent surge of female directors will start to have a visible impact on the number of female chairs in two to three years’ time. By 2030 at least one fifth of French boards will have a female leader.