Global life sciences executive search firm, the RSA Group, has published a new study analysing the performance of biotechnology boards, CEOs and chairs from both Europe and the US, from an investor viewpoint, demonstrating that European companies are outperforming US ones.
Europe vs USA
When measuring average market capitalisation, RSA Group found that US-based companies were leaders — $3.1 billion vs $727 million. However, this measure alone is not enough for overall performance analysis.
In order to understand the relationship between company leadership and investment performance, the new report compared publicly traded biotech companies across European exchanges against companies on NASDAQ and identifies the top 20 Boards behind the leading companies in Europe and the US. Analysis in the report identifies the ideal Chair and ideal CEO profiles, and studies the profiles of the top 20 CEOs and 20 Chairs who outperformed their industry peers during the 3-year period up to June 2017.
Additionally, the report looked forensically at the elements that contribute to board performance, such as share ownership, over-commitment, succession planning, diversified composition and remuneration.
“Our goal was to bring insights that can be used in data-driven decision support, vital for building, assessing and refreshing boards. Better leadership planning can help ensure the best return on technology and capital,” explained executive chairman Nick Stephens. “For people running public companies or private companies with public ambitions, there is a responsibility to patients and shareholders to ensure that the board is as effective as it can possibly be. We believe that the new information uncovered by our research can play an important role in contributing to the success of biotech companies and in doing so, change patients’ lives.”