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:
- In order for a successful evaluation process to occur, the board members, as representatives of the shareholders, must want to be evaluated in order 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 among the most important of 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.