When board directors don't feel that they are getting enough out of the evaluations, it's a signal to the board to have a more detailed discussion about what they need to get from the evaluations. When it does, making changes in board director composition will be a good thing, albeit a bit uncomfortable at first. The reality is that evaluations may point to board director weakness. Others just don't believe that the information they gain from evaluations is enough to justify the time that they spend completing them. Some of them feel that if they were honest about them, it would alienate certain directors. The tone of board discussions around the topic of the evaluations is also an important factor in getting the board directors to do their best on the evaluations.īoard directors have their reasons for not getting excited about evaluations. Timeliness matters with D&O questionnaires, as corporate secretaries have deadlines for submitting reports to comply with disclosure regulations.Ĭorporate secretaries who take a positive approach, reminding board directors of the importance of the questionnaires and evaluations, and how they will be used to better the board's work, will likely get a positive and engaged response back from board members. The Corporate Secretary's Mindset Sets the Tone for Board Director ParticipationĪs with anything that is difficult or time-consuming, the way that you approach it makes all the difference in motivating others to take it seriously and to see enough value in it to do a top-notch job on their part of it. As regulations for for-profit corporations increase, non-profit boards are also starting to feel the pressure to complete D&O questionnaires and board evaluations. ![]() Investors are sure to take notice of boards that go above and beyond what they need to, in order to run a reputable company. Boards that perform these duties for corporations that don't require them prove that they are staying ahead of requirements and priming themselves for good governance. In fact, only about 21% of boards require D&O questionnaires and board evaluations. Director and officer (D&O) questionnaires and board evaluations aren't required by every corporation, including those that otherwise practice good corporate governance.
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