Autor: Alfredo Enrione – Director del Centro de Gobierno Corporativo y Sociedad
The Promise of the Hybrid Board
Since the pandemic, hybrid governance models have been heralded as the future of boardrooms. Proponents argue that they blend the best of both worlds: the efficiency of virtual participation and the depth of in-person engagement. Virtual shareholder meetings have thrived—89% of the top 150 Silicon Valley companies held them in 2024, according to the 2024 Silicon Valley 150 Corporate Governance Report. If it works for shareholder meetings, why not for boards?
Because the hybrid boardroom isn’t just a logistical experiment; it’s a governance disaster waiting to happen.
The Reality: A Two-Tiered Board
Hybrid board meetings create an illusion of inclusivity. In reality, they breed division:
- The “Insiders” vs. the “Zoomers”:
- The Death of Spontaneity:
- Power Imbalances:
Lessons from Silicon Valley’s Virtual Success
The Harvard Law School’s 2024 Silicon Valley 150 Corporate Governance Report celebrates the effectiveness of virtual shareholder meetings. These meetings allow companies to:
- Engage a broader audience
- Enhance transparency
- Save time and resources
But comparing shareholder meetings to board operations is like comparing social media to diplomacy: the stakes, dynamics, and required depth are entirely different.
Boards are not about broadcasting; they’re about governing. Effective governance requires:
- Deep, unfiltered debates
- Subtle interpersonal dynamics
- Trust built through sustained, direct engagement
Why the Hybrid Board Fails
- Technology Isn’t Neutral:
- Eroded Accountability:
- Fragmented Decision-Making:
The Cost of Complacency
Hybrid boards may save time and travel costs, but what do they cost in the long run? The answer: governance quality, decision-making integrity, and, ultimately, value creation.
Consider this: Would you trust a surgeon to operate remotely while others are physically present? Governance, like surgery, is too critical to dilute with half-measures.
Rethinking the Boardroom
To achieve truly effective governance, boards must:
- Commit to Presence:
- Design for Equity:
- Prioritize Trust Building:
For Boards to Reflect On:
- How much influence do remote directors wield compared to those in the room?
- Are hybrid meetings solving logistical problems while creating governance ones?
- What critical signals are being missed in fragmented discussions?
The Future of Boards
The hybrid board promises efficiency but delivers division. Governance is not about convenience; it’s about commitment. The choice is clear: Boards that aspire to lead must abandon the allure of hybrid shortcuts and embrace the hard work of true cohesion.
The ultimate question isn’t “Can we make hybrid boards work?” but “Can we afford the cost of their failure?”
