Metro Vancouver is balking at a proposal by the Vancouver International Airport Authority to allow foreigners on its board of directors.
The Metro Vancouver directors' concern was triggered by a recent proposal to amend the bylaws to allow "at any one time a member of the board to be a non-Canadian or non-B.C. resident."
The Authority's bylaws provide that every director on the 14-member board must be both a Canadian citizen and B.C. resident. As one of several entities responsible for appointing directors to the board, Metro is concerned that removing the residency/citizenship restriction for one position would constitute a "slippery slope" toward foreign control.
While I support Metro Vancouver's view that there is a considerable talent pool locally, the directors' concern is misguided and retrograde. Not only is it unreasonable to suggest that such a minor change will open the floodgates to foreign control, but restricting the entire directorship on the basis of nationality or residency is neither in accordance with current trends in governance, nor in the best interests of YVR and its stakeholders.
YVR is the second-busiest airport in Canada and is an essential facility for the city, province and country.
According to YVR's 2010 Economic Impact Report, the airport employs more people than B.C.'s forest industry, and annual government revenues from YVR total $608 million to the federal and provincial governments, the City of Richmond and TransLink.
Given that the board is responsible for managing or supervising the management of the airport's operations, it is crucial that the individuals who serve on its board have the right mix of skills and experience to ensure that, collectively, they can be effective in overseeing an organization of YVR's size, significance and complexity.
This explains why the roster of board members boasts many individuals with impressive CVs, including the chair with over 20 years as a senior executive in the airline industry, both in the United States and Canada.
The first step in building an effective board is to determine the experience, skills and attributes needed, guided by a comprehensive understanding of the organization, and its future opportunities and challenges.
Although it is necessary for directors to have a keen awareness of relevant regional, provincial and national issues, it is also essential that they have the appropriate skills and knowledge to assist the board in discharging its key responsibilities relating to strategy, operational and financial performance and risk oversight. YVR operates in a global context and it is reasonable, some would say essential, that, when necessary, the board be able to look beyond the region for individuals with experience relevant to YVR's needs to find the best person for the job.
It has become well accepted that diverse boards, made up of individuals with a variety of backgrounds, skills and experience, make better decisions.
Directors with different backgrounds bring different perspectives and are able to identify and debate all sides of an issue.
This can prevent groupthink, spark creativity, enhance risk review and lead to better decision-making.
Diversity in this context includes diversity with respect to industry experience, functional expertise, market knowledge and leadership style, as well as community perspectives, culture and gender.
In the case of an organization such as YVR, where so much of its business and clientele is international, it would seem counterintuitive to restrict the board's ability to recruit individuals with international experience or perspectives and forgo any competitive advantage such a board might bring.
Allowing a candidate on the board of YVR who provides that expertise is a step in the right direction.
Elizabeth Watson is president of Watson Advisors Inc. (www.watsoninc.ca), a leader in board governance and director search for the public and private sectors in Canada.
