SECTION 3: NOMINATION AND APPOINTMENT PROCESS

Section 3: Nomination and Appointment Process | 47 A more in-depth discussion on gender diversity is provided in Appendix 3G. 3.5.6 Age diversity exists when two or more generations are represented on the Board. While senior directors may bring much wisdom to the boardroom, it is possible that younger directors may be more in touch with the needs of a fast-changing world. This is especially relevant for companies that target customers in that age group. 3.5.7 Ethnic diversity reflects the composition in the population. Companies operating in Singapore – a cosmopolitan city with a multi-racial society – may benefit from Boards that reflect the ethnic and cultural diversity of the local community and customers. 3.5.8 Diversity of nationalities and geography is relevant for regional and global companies. Executives who have lived and worked in countries where the company has operations help bring insights and understanding of those markets that may not otherwise be readily available. 3.5.9 Tenure diversity means ensuring that Board members are of different seniority on the Board so that there is continuous fresh thinking, and ongoing renewal of Board members. 3.5.10 Other forms of diversity could be company-specific. A company operating in a multi-language environment, for example, may want Board members who speak certain languages. Others may specifically seek Board members from different cultures or religions. 3.5.11 While the NC and the Board should strive to ensure the inclusion of diverse groups and viewpoints, the selection of directors should be based on merit with due consideration for the benefits of diversity. Decisions made primarily due to external pressures for diversity can lead to tokenism if merit against objective criteria is not properly taken into account. 3G