While geographically close to Spain, Portugal’s corporate governance, cultural particularities, and business structures are distinct. In this article we explore what works in Portugal to build effective governance.
The legal side: Shaping Board Advisory in Portugal
Portugal’s corporate governance landscape is shaped by the Código de Governo das Sociedades, which serves as a flexible framework rather than a strict mandate. Most Portuguese companies operate with a unitary structure, although some are gradually exploring two-tier models to enhance oversight.
Unlike Spain, where regulations push companies toward stricter board independence and transparency, Portuguese firms rely more on advisory services to voluntarily adopt governance best practices. This creates a clear role to help companies move beyond compliance and towards strategic governance.
Board Composition: Portugal vs. Spain
Board composition in Portugal often reflects the dominance of family-owned businesses and SMEs. Many still lack independent directors, and diversity levels remain lower than in Spain. In contrast, Spanish firms—especially in large companies—tend to include a higher proportion of independent members and follow gender diversity quotas.
Board Advisory services in Portugal are increasingly hired to:
- Introduce independent members.
- Guide companies in professionalizing their governance.
- Help family firms transition to more modern structures.
Cultural Factors Influencing Board Advisory in Portugal
Corporate culture in the country places strong emphasis on discretion and long-term trust. External advisors must work through relationship-building before influencing governance structures. While Spanish firms tend to approach consulting more transactionally, companies in Portugal expect ongoing partnership and discreet support.
Effective Board Advisory in this country means respecting this cultural dynamic, providing tailored advice that aligns with internal sensitivities and gradual change.
ESG and Internationalization: A New Focus
As Portuguese companies expand into international markets like Brazil and Africa, Board Advisory services are increasingly focused on:
- Managing cross-border governance.
- Integrating ESG principles Strengthening leadership to support international growth.
Compared to Spain, ESG adoption is progressing at a slower but steady pace. Advisory firms have the opportunity to educate boards on ESG oversight and support sustainable corporate strategies.
Board Advisory, Localized Approach
Companies investing in the country must understand its unique governance environment:
- More flexible regulations.
- Less independent structures.
- A relationship-driven business culture.
- Growing demand for ESG and international advisory.
Partnering with experienced local advisors ensures companies can build stronger, more effective boards that meet both domestic and global expectations. To learn more about our service click here: CEO & Board advisory Worldwide – Zavala Civitas
