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DOI: Corporate Governance in the Context of Business Digital Transformation
Kapustina Ekaterina , CEO M&A consulting Los Angeles, California, USAAbstract
This article examines the transformation of traditional corporate governance mechanisms amid the accelerated adoption of digital technologies, where the pace of innovation and the escalation of IT-related risks demand from Boards of Directors not only monitoring but also active strategic engagement in digital initiatives. The relevance of this study is driven by the fact that global spending on digital transformation reaches trillions of dollars. In contrast, only a small fraction of companies manage to adapt the structure of their governing bodies: standing IT committees exist in only 15% of S&P 500 organizations, and “digital-savvy” directors number no more than 24%. Meanwhile, firms with high Board digital competence demonstrate market-capitalization growth rates 30% higher and exhibit superior equity returns. This research aims to identify key institutional and procedural changes necessary to align corporate governance with the requirements of business digital maturity. The novelty of this work lies in the comprehensive assessment of the Board composition, specialized committees, and technological and ESG metrics integration on strategic decision effectiveness, and in formulating practical recommendations for revising mandates, business processes, and training programs at the highest management level. Conclusions drawn from this study point to the fact that sustainable growth in the digital era would demand: (1) increasing to three or more Board members having IT and cybersecurity competencies; (2) establishing empowering standing Science and Technology Committees; (3) providing continuous education including “digital onboarding” for new Board members; (4) creating a single digital KPI dashboard accessible to all; and (5) embedding new
procedures into charter documents under EU AI Act Data Act NIS 2 requirements. The DBS Bank case shows that the mix of these measures led to a threefold increase in share price and a fivefold rise in profits over ten years. This piece will be helpful for Board members, corporate secretaries, corporate governance consultants, and digital transformation strategists.
Keywords
corporate governance, digital transformation,, Board of Directors, digital-savvy board, technology committee, digital maturity, ESG metrics, ,AI Act
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