NACD Compensation Committee Chair and Nominating and Governance Committee Chair Advisory Councils: The Board and Long-Term Value Creation
In brief: Directors have a fundamental responsibility to ensure that the organization’s short-term actions are aligned with its long-term strategy. At a recent joint meeting of the NACD Compensation Committee Chair Advisory Council and the NACD Nominating and Governance Committee Chair Advisory Council, Fortune 500 directors discussed board and committee roles in advancing long-term value creation. The discussion covered the following topics:
- Corporate governance has become more of a shared responsibility than ever before.
- Directors should adopt a proactive stance and engage with management in a candid, ongoing discussion about the company’s strategy.
- Directors have a responsibility to set the right tone at the top regarding long-term value creation.
This brief includes a list of committee-specific takeaways on long-term thinking in the boardroom and a discussion guide to help initiate change in how the board engages in strategy.
This resource can help your board:
- Understand the board’s role in the development of a long-term strategy.
- Engage with management in discussions about long-term goals.
- Consider committee-specific practices that can promote long-term thinking.
Most relevant audiences: compensation committee members, nominating and governance committee members