Board evaluations were once strictly optional. Today, with the New York Stock Exchange (NYSE) requiring that NYSE-listed companies address board evaluations, they have become a governance standard for all public companies. A well-planned and well-executed board evaluation can reinforce appropriate board and management activities and reveal issues that hinder optimal board performance. An evaluation can be as simple as a written survey of the directors or a more robust — and, we would argue, more effective — approach that concludes with an active board discussion of the findings and a commitment to follow up any outstanding issues.
In addition to the experience of our own consultants in facilitating board evaluations, the article draws upon the perspectives of two other experts: Holly Gregory, partner in the governance practice at the law firm of Weil, Gotshal & Manges LLP; and David Nygren, partner in charge of the corporate governance practice at Mercer Delta Consulting Group.
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