Report of the NACD Blue Ribbon Commission on Board Evaluation
This report is a candid exploration of how directors can effectively use a self-assessment process to enhance performance and develop the board as a strategic asset. Now available with updated templates and charts to facilitate self, peer, and committee evaluations.
This report includes the following Commission recommendations:
- For a successful evaluation process to occur, the board members, as representatives of the shareholders, must want to be evaluated to provide a higher level of guidance for the company.
- Boards need directors with the correct collection of expertise. Courage to do what is best for the company and its shareholders is one most essential values in board members.
- A culture of "constructive interaction" is essential within the board.
- Evaluations must be approached with consideration of the corporate strategy.
- The correct evaluation process must be based upon established strategic goals.