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Navigating Dynamics Between the Supervisory and Management Boards

In: Two-Tier Boards

Author

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  • Darko Tipurić

    (University of Zagreb)

  • Lana Cindrić

    (University of Zagreb)

Abstract

This chapter explores the relationship between supervisory and management boards in the two-tier governance model, emphasizing the need to balance oversight and collaboration. It highlights how tensions, information asymmetries and power imbalances can lead to relational risk and weakened trust. The chapter outlines how board dynamics should evolve across organizational life cycle stages and introduces mechanisms to rebalance power, such as clearly defined roles, transparent communication, and the involvement of a corporate secretary. It also analyzes how trust, both between and within boards, enhances governance effectiveness, while excessive trust or control can undermine decision-making. Finally, the chapter focuses on the board chair’s pivotal role in fostering collaboration and managing stakeholder engagement.

Suggested Citation

  • Darko Tipurić & Lana Cindrić, 2025. "Navigating Dynamics Between the Supervisory and Management Boards," Springer Books, in: Two-Tier Boards, chapter 0, pages 79-101, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-95746-8_4
    DOI: 10.1007/978-3-031-95746-8_4
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