Two Perspectives on the Role of the Supervisory Board
The supervisory board is a corporate body whose role is defined by the Commercial Companies Code and the company’s internal documents. This is the formal-legal perspective. Alongside it, however, there is also a business perspective—viewed through the eyes of entrepreneurs, investors, and shareholders. For them, the board is not only about oversight but also about expert, advisory, and strategic support. It is expected to act as a partner, but also as a constructive challenger to the management board. Additionally, it serves as the owners’ “eyes and ears”, monitoring the company’s direction, key decisions, investments, and operational activities. In practice, the role and significance of the supervisory board are understood differently depending on the owners’ expectations and the experience and awareness of those who form the board..
The Specific Nature of Supervisory Boards in Family Businesses
In family-owned companies, supervisory boards are often perceived as closed bodies, typically composed of family members and trusted advisors—such as lawyers, tax consultants, managers, or friendly entrepreneurs.
Trust is seen as a key element. The search for new members is often limited to well-known and proven individuals. However, it is often worth complementing trust with expertise and experience, which may not always be found within the family or close circle. One of the main methods for finding such individuals is through executive search firms, which can identify and recommend suitable candidates to the business owners..
Expectations Towards Board Candidates
Expectations from family business owners vary. Companies often seek individuals from the same or a related industry, who understand its specifics, possess relational capital in the sector, and have a recognizable name—or in HR terms, personal branding or reputation.
Bringing a well-known individual into the company, beyond their substantive value, also offers marketing benefits and can positively influence the company’s market perception. People with a good reputation and visibility often have an advantage. However, this does not refer to “celebrities,” who may be controversial or risky.
As one family business owner put it:
“We want to invite someone we can trust—who won’t share internal information outside the company and who will act solely in its interest, not their own.”
The Executive Search Process for Board Members
From the company’s perspective, the process should begin with defining the expected added value of the future board member. This determines the required experience and desired personality profile. If an executive search firm is used, and the profile is well-defined, the firm will begin direct search activities, leveraging its network, databases, market knowledge, and industry expertise.
These projects are often—but not always—confidential, so the client’s name is not disclosed at the early stages. Trust in the advisor is crucial, as the client relies on their recommendation to reveal the project to selected candidates. This is usually preceded by signing an NDA or confidentiality agreement. Executive search allows for broad recruitment without disclosing the company’s identity. However, if the company conducts the recruitment independently, defining expectations remains just as important..
Key Factors in Candidate Selection
Family business owners often ask: What is the optimal profile for a supervisory board member in a family company? The answer depends on the specific situation and the expectations tied to the role.
In practice, the first deciding factor is often relational capital—how well-known the person is among decision-makers and influencers: owners/shareholders, their families and networks, executive search firms, investment banks, law firms, or other board members.
The second key factor is market reputation, or the candidate’s personal brand. If their name comes up in discussion, it’s easier to recognize and verify—e.g., via LinkedIn or Google.
The third factor is references—trusted individuals in the market who can vouch for the candidate’s expertise, reliability, diligence, and accountability.
A major advantage is prior experience on supervisory boards, which reduces the risk of misunderstanding the role—so different from executive functions. For larger companies, experience in board committees is especially valued. Also helpful are general business and market understanding, industry knowledge, and expertise in finance, law, or new technologies..
Author: Piotr Wielgomas
