Considerations for Enhancing the Board Evaluation Process

Thorough, rigorous, and recurring evaluations are an important mechanism for boards looking to reliably assess performance and effectiveness. For over a decade, companies listed on the New York Stock Exchange (NYSE) have been required to disclose how their boards evaluate key committees. In addition to committee evaluations, the NYSE also recommends that companies conduct full-board assessments annually.

NACD has long called on companies of all sizes and ownership structures to carry out individual director, committee, and full-board evaluations as part of a broader strategy for continuous improvement. This brief offers guidance on how boards can transform evaluations from a check-the-box exercise to a dynamic process that enhances board performance.