The saga of Entrepreneurs Financial Centre Uganda Limited (EFC Uganda Ltd), a microfinance deposit-taking institution (MDI), serves as a stark reminder of the imperative to fortify board structures and overall governance. In 2020, EFC defied expectations, delivering an impressive 19.6% return on equity, a surge of 2.3 times over 12 months despite the global economic downturn in Uganda. The institution also boasted a remarkable 55.1% year-on-year growth in assets, surging from Ugx. 56 billion in 2019 to Ugx. 87 billion in 2020, primarily driven by expanded lending to the informal private sector driven by the group lending credit model. Beneath…
The Strategic Imperative of Compensation for Board Members
The presence of a well-structured board of directors is synonymous with organizational excellence. However, the effectiveness of a board hinges on the caliber of its members, necessitating a judicious approach to their recruitment and compensation. A truly impactful board comprises individuals with diverse skills, varied exposure, and extensive experience, aligned with both current and future business needs. As the saying goes, “If you need a board member, recruit a board member. If you need a volunteer, recruit a volunteer,” the importance of strategically acquiring talent cannot be overstated. Despite the universal desire for proficient directors, some companies aspire to secure…
