Multiyear Board Succession Planning Matrix

In brief: Originally appearing in the Report of the NACD Blue Ribbon Commission on Building the Strategic-Asset Board, these board experience matrices are designed to assist nominating and governance committee members plan for board succession. 

This resource can help your board

• Plan for board succession as board members reach their age limits, term limits, or retire.

• Determine what mix of director skills and experience is needed, and which skills and experience each director brings to the board.

• Disclose board skills and experience to investors.

Most relevant audiences: nominating and governance committee members

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.