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Regional and rural directors face a range of governance hurdles, but they nevertheless come equipped with skills which are attractive to both local and national boards.
In spring of 2025, the south-west area of Victoria was bone dry and many farmers were doing it tough. So when Joanne Butterworth-Gray GAICD was given an opportunity to help in her role as chair of Southern Rural Water, she jumped at it.
“The managing director [of Southern Rural Water] wanted to put an innovative plan to the minister that would allow farmers with more water than they need, to sell it to other farmers,” she says.
“I thought it was a great initiative, because it was about listening to your customers, who were the farmers, in this case.”
The minister approved the concept and the roll-out was a success.
“For most ASX boards, it would be different,” says Butterworth-Gray, also chair of Fairtrade Australia/New Zealand, the AICD Gippsland Regional Forum and, until recently, of Campaspe Port Enterprise (CPE) in the Victorian town of Echuca.
“If I was on the board of Wesfarmers, for example, the customers are a long way away from you. That community connection is a very satisfying part of a role on regional boards.”
Challenges of regional boards
Nevertheless, rural and regional boards face pressing challenges — from talent shortages and geographical distances to resourcing and unique risks.
Jane Crombie FAICD, president of the AICD Queensland Division Council, grew up in the regional city of Toowoomba and spent her early married life on a remote outback sheep station eight hours west of Brisbane.
She notes many regional and rural boards face limited transport options, geographical distance, and even constrained access to technology, in some areas.
“Regional directors may therefore face risks such as concentrated customer bases, workforce availability or exposure to cyclical industries, including agriculture, resources and tourism, which require a different lens on risk appetite and a robust approach to scenario planning,” says Crombie.
“Workforce strategies may need to acknowledge issues around housing, partners and schooling.”
Butterworth-Gray agrees, adding that the pool of director talent in the regions is not as wide as in urban areas, due to the smaller population size. Nor can remuneration possibly match the pay packets offered by urban boards.
“Many regional and rural boards are under the auspices of local governments and councils, which are often strapped for cash,” says Butterworth-Gray.
“There is a compromise that regional boards make between the talent, where they can access the talent and then the cost.”
Making decisions with long-term impact
Georgie Somerset AM FAICD chairs the Royal Flying Doctor Service (RFDS) in Queensland. She is also deputy chair of the ABC, is on the National Farmers Federation, RFDS Foundation and the Foundation for Rural and Regional Renewal (Bendigo) boards and chairs the Red Earth Community Foundation in Queensland’s South Burnett, where she is based.
Somerset says remote board members must consider the impact of their decisions long beyond their board tenure.
“There are many intergenerational family businesses in regional and rural areas, so the next generation is firmly embedded there already and you’re always thinking about how to create a great environment for them,” she says.
Remote boards are often highly visible to close communities, adds Somerset, which can also mean a high level of accountability.
“There is no hiding,” she adds. “I learned very early in my directorship with the ABC what everyone's viewing habits were, because they told me what they liked and didn’t like, thinking I had some impact on TV schedules.”
However, Somerset views this hyper level of engagement as “an opportunity to listen”.
“It’s actually part of the privilege of being a director in a small community.”
Of course, those strong ties with the community are often hard-won.
When Butterworth-Gray was appointed as CPE chair, the local community was not particularly supportive of the enterprise setting up in the region, she notes.
“So to build community support, you’ve got to be visible. You need to be out there in the community, almost conducting a road show, and really listening to people.”
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Bridging the divide
Despite the challenges faced by remote boards, inroads are slowly being made.
In her new role as president of the AICD Queensland Division Council, Crombie says she aims to help improve access and services to the 30 per cent of Queensland’s membership based outside Brisbane.
Crombie will travel to regional events and meet face-to-face with members. She recommends rural and regional directors leverage this kind of travel effectively.
“Where regional directors are required to travel for board meetings, incorporating activities such as site visits, stakeholder engagement events or board professional development sessions within single trips can make efficient use of travel time.”
Jorunn Lorenzen, executive director of the Australian Rural Leadership Foundation, agrees, adding remote directors aren’t immune from the scourge of impostor syndrome.
“I’d say the mindset shift is actually the trickiest one, to know you belong on a board and to know people from rural, regional and remote Australia have a really unique perspective,” she says.
“We have problem-solving skills and ingenuity, that ability to adapt, and also the resilience of knowing how to navigate environments where access and services aren’t taken for granted.”
She says while moving from a regional or rural board to a national one can be tricky, it’s far from impossible. Lorenzen recommends connecting and networking with “people outside your bubble”, joining advisory boards, proactively seeking out mentors, self-educating and upskilling.
“Define your own story and know what you have to contribute,” she says. “Be confident and value that — and proactively seek out some of those mentors or people who can help you, especially in the early stages.”
AICD hosts regional forums across a range of locations in NSW, WA, QLD and NSW to foster connections in the regions.
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