Board Evaluations, Education and Development
There are various evaluation approaches and each board should apply a process that best meets its needs. Beyond the traditional use of questionnaires (self- and peer-rating techniques), organizations may develop metrics for performance, or commission an independent review that includes detailed interviews of directors and senior management.
In addition to assessing the effectiveness of the full board and its committees, as required by the NYSE, it may be useful to evaluate the performance of individual members, and to consider whether they continue to have the skills and expertise appropriate to the organization. The results of the evaluation should be one of a number of factors considered when developing the board’s continuing education agenda.
For information and resources on audit committee evaluations, see the Performance Evaluation section under Audit Committee on this site.
"I have been encouraged by the number of boards that have implemented evaluation and education programs. In practice, however, I find much room for improvement. If enhancing board efficiency and effectiveness is the ultimate goal, filling out checklists and attending public forums simply isn’t good enough. The boards and management teams I have worked with have had a very good sense of the board’s improvement opportunities; all they needed was a manageable process. I encourage boards to measure performance in three areas: board composition and competency; processes and policies; and information and communication. Almost every aspect of the board’s performance can be easily measured—and improved—using this very simple framework."
Nicole Sandford, partner, Deloitte & Touche LLP
Framing the Future of Corporate Governance
Deloitte Governance Framework
The Deloitte Governance Framework offers an end-to-end view of corporate governance and forms the basis for the tools that help boards and executives quickly identify potential opportunities to improve both effectiveness and efficiency. It is designed to help boards of directors address even the most fundamental of questions, including:
· What is the role of the board in the company’s corporate governance program?
· Exactly what should we be doing in the critical areas of oversight such as strategy and risk?
To learn more, download the complete document.
Do You Know?
The NYSE Governance Listing Standards require listed companies to publicly disclose their policy on director education.
You can find a listing of upcoming educational events related to corporate governance by clicking on the Events link at the top of this page.