NACD White Papers Series I

In October 2008, the National Association of Corporate Directors launched a set of principles intended to guide corporate leaders. These principles, known as the Key Agreed Principles to Strengthen Corporate Governance for U.S. Publicly Traded Companies are the cumulative effort of many organizations and individuals to find a truly shared set of ideas to improve the functioning of America’s boardrooms. After receiving input from the director community, it became evident that four areas warranted greater work: oversight of risk, development of strategy, approval of executive compensation, and communication of these matters to stakeholders. These subjects are of vital importance because directors cannot have appropriate oversight without addressing all four of them.