Boardroom INSIDER for… SEPTEMBER

 

CORPORATE BOARD EVALUATION – SEEKING THE RIGHT QUESTIONS

A decade ago, self-evaluation by corporate boards of their members, procedures and effectiveness was uncommon throughout the world. But by 2004, new governance rules (including the U.S. Sarbanes-Oxley reforms) mandated board evaluation for public companies.  Have board gotten better at grading themselves over the past decade?

Yes, says a special report in the September issue of online monthly Boardroom INSIDER.  “Board evaluation has quietly evolved, and become much more professional,” writes BI publisher and boardroom trainer Ralph Ward.  He cites greater use of outside facilitators, software and surveying tools to allow deeper, more objective assessment  insights.  Also, board self-evaluation has grown from “basic box-checking on board procedure to in-depth interviews and analysis of how the board needs to improve.” 

Best-practice boards also reach outside the boardroom for support and insight, tapping corporate counsel and other inside staff, while seeking feedback from the top executive team members who work with board members.” Do these executives find directors well informed, knowledgeable, active and open to suggestions?” asks Ward.

Also in the September Boardroom INSIDER:

 pinkWill investor input be the next frontier in board evaluation?
 pinkAn evaluation blueprint of questions for boards and directors.
 pinkQ&A: How can we prevent legal liability for our board evaluation?