Optimizing Board Evaluations
The effectiveness of a company’s board of directors is critical for ensuring that the company has a sound and long-term business strategy that is executed within an environment of prudent risk management. If conducted properly, a periodic board evaluation can be a valuable tool to increase board effectiveness. To help companies and their advisors plan their first board assessment – or to build on their previous ones – this article provides insight into the common types and formats of board evaluations and outlines various considerations for those designing the assessment; seeks to focus companies and their advisors on several key topics that each evaluation should address; and concludes with some tips regarding the post-evaluation discussion with the board.