Governing Digital Transformation and Emerging Technologies

In brief: A convergence of global trends over the last 20 years, including the boom in global data traffic, online users, connected objects, and access to cloud computing, has laid the groundwork for the digital era. This era is predicted to bring tremendous value to businesses and societies alike. Armed with access to new technologies such as artificial intelligence (AI), blockchain, Internet of Things (IoT), and robotics process automation (RPA), traditional firms across industries are reimagining solutions to existing business challenges.

Directors recognize the near-term disruptive potential of new business models enabled by emerging technologies. Boards play a critical role in guiding firms toward successful transformation. As a result, they are actively reassessing their oversight responsibilities in governing digital transformation initiatives.

To help address this challenge, this report introduces a practical guide that prepares directors to navigate the complexities of emerging technologies and helps them guide their organizations’ efforts in becoming more digital and data-driven.

The focus on the board’s compensation committee has never been sharper. The components of compensation plans and the link between compensation and company performance are under intense scrutiny from shareholders, employees, policymakers, the media, and other stakeholders. The Report of the NACD Blue Ribbon Commission on the Compensation Committee revisits NACD’s 2003 Report of the NACD Blue Ribbon Commission on Executive Compensation to highlight the new environment in which compensation committees—and, more broadly, boards—are now operating. It recommends that the compensation committee and board work together to establish an executive compensation philosophy that supports the company in creating long-term, sustainable value.

The report includes ten specific recommendations for compensation committees to consider when evaluating their compensation philosophies. It also provides practical tools, such as sample compensation committee charters, a compensation committee assessment, and guidance on executive employment contracts.