Performance evaluations are becoming increasingly important due to the New York Stock Exchange’s requirements and ongoing shareholder activism. A neutral, third party could be exactly what your board needs to fulfill these requirements in a confidential and cost effective manner.

Today’s boards clearly understand that annual assessments are imperative to their continued effectiveness. 86.0% of respondents to NACD’s 2007 Public Company Governance Survey conduct full board evaluations 93% of those annually, 82% conduct committee and 46% conduct individual director evaluations.

As a non-profit, independent organization, with 30 years of research on governance issues, NACD is an objective and essential resource and we can assist you in your board evaluation process. We will work with you to customize the board assessment tools, facilitate the process, and provide the final results.

Best governance practices currently recognize three types of evaluations that are considered beneficial for purposes of board self-improvement:

• A full board evaluation examines the functionality of the board in total and acting collectively.
• A director peer evaluation examines director performance on an individual level and includes such issues as board attendance, preparation and contribution.
• A committee evaluationexamines the effectiveness of the board committees and compliance with their charters.

Timing and Delivery
One of the most important benefits about NACD’s Board Evaluations is the flexibility to choose when, where, and how you want the evaluation process to take place. We will also work with you to decide the right approach for sharing the results with your board.

Follow-Through
An important component of the evaluation process is having the right follow-through to ensure that board evaluations continue to identify action items for improving performance and produce measurable results. NACD will provide recommendations to improve board performance based on leading governance practices, research, governance guidelines, and peer comparison.

In addition, NACD can provide In-Boardroom programs on any of the issues that your board might need to address – based upon the results of the evaluations.

The right follow-through is critical to an effective evaluation process and its purpose: to enhance corporate performance and, ultimately, long-term shareholder value.

TO SCHEDULE AN NACD EVALUATION OR LEARN MORE
Email: Janis Boyce at jrboyce@nacdonline.org
Or call NACD at 202-775-0509