Board and Director Evaluations

Rigorous, recurring board evaluations are a governance essential and can serve as a tool to meet rising expectations around board accountability and transparency. Board evaluations became a New York Stock Exchange (NYSE) listing requirement in 2003, and today, 99 percent of S&P 500 boards conduct them annually. These processes, which typically include a review of the board’s structure, processes, dynamics, and overall effectiveness, have also been adopted across the private and nonprofit sectors.

Beyond the holistic evaluation of the full board, about 59 percent of Russell 3000 boards also conduct evaluations of each board committee. The Russell 3000 has also seen a 14 percent increase in the amount of full board, committee, and individual evaluations between 2020 and 2024. These additional layers of evaluation provide a more comprehensive view of governance and reinforce accountability at every level—an especially valuable approach for small-cap and private companies, where governance structures may be less formalized or are continuing to evolve.