Report of the NACD Blue Ribbon Commission on Risk Oversight

The Report of the NACD Blue Ribbon Commission on Risk Oversight: Board Lessons for Turbulent Times addresses critical issues for directors looking to be a permanent and active part of the risk oversight solution. 

These key issues include:  

• Why boards need to be involved in risk oversight, especially today

• How a solid foundation of best practices can help directors oversee risk management

• How management and the board can detect specific material risks

• How directors can help companies address specific risks and prepare for crisis

• What directors can do if a potential risk turns into an actual crisis 

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.