In September 2021 a book written by Michał Rogatko, a member of the Association of Independent Non-Executive Directors, entitled “Communication between the Supervisory Board and the Management Board in Polish listed companies” was published.
The communication is crucial for the execution of the tasks which supervisory boards face. Supervisory boards are responsible not only for the supervision, but also for the support of management boards whenever the goals of the company are concerned. Research proves that there is an information gap between managers and supervisory boards representing shareholders’ interests. We call this phenomenon information asymmetry and it makes the work of supervisory boards more complex. Information asymmetry lies in the foundation of principal-agent problems, as per agency theory. One of supervisory boards’ roles is to reduce this conflict.
The objective of the book is to find an answer to the question of what is the optimal profile of the communication and how it can be improved. Based on the literature and own research, the list of factors influencing the effectiveness and efficiency of the communication between the two of the company’s bodies was created. The book is dedicated not only to the boards’ members, but also to the private and institutional investors, who could be inspired as to how supervisory boards’ potential could be best utilised from their perspective.
