NACD Announces Key Agreed Principles

Ken Daly, President & CEO of NACD
Announces Release of Key Agreed Principles

The National Association of Corporate Directors (NACD) has worked for more than a year with business leaders and shareholder groups to create a set of Key Agreed Principles for Strengthening Corporate Governance by identifying core areas boards, management and shareholders agree should be the basis for good corporate governance. These Principles can play an enormous role as a first step in helping corporate leadership, regulators and investors as they develop new and necessary approaches to oversight.

Next: Initiative to Restore Confidence in Corporate Governance

NACD Members Asked to Weigh In

As a next step, NACD recognizes that the Principles must be brought to life at the practice level in U.S. boardrooms in order to help restore public and investor confidence in the governance of corporations. Therefore the NACD has launched an initiative to engage directors in a frank dialog to identify leading practices that empower board leadership, particularly in four key areas: oversight of risk, corporate strategy, compensation, and transparency.

Due to the current financial and economic crisis, public and investor confidence in corporate governance has eroded dramatically. We feel it is only a matter of time before corporate directors are put under intense scrutiny, and that regulatory action is imminent.

Therefore, to ensure that the director community is an active participant in the debate on corporate reform— NACD will be hosting a variety of sessions to allow directors to communicate with us and help form leading practices on these important issues. The first session was an interactive online discussion held on December 10th which discussed each of the four areas identified above. Currently, we have opened targeted feedback areas, for directors to comment on the four areas of focus. You are encouraged to participate in all areas: