The When and Why of Refreshing Your Board
Getting the right set of directors who bring the necessary skills, expertise, experience, and diversity to your board constitutes one of the most important – and one of the most difficult – tasks facing any company. The data suggest that few companies get this exactly right.
In PwC’s annual director surveys, more than one third believe at least one director should be removed from the board because they lack competencies or arrive unprepared for meetings. Yet incumbency rates for directors remain over 90%, with the average length of service close to nine years on average. Meanwhile, activist investors are increasing pressure on companies to disclose board composition details, and to bring in fresh talent. This set of pressures has many seeing board refreshment as a new corporate imperative.
It has never been more important for directors to have documented performance measures in place. The need to refresh the board moves from elections, term limits and proxy statements to ongoing proactive assessment of the board’s and directors’ performance. Woven into this mix are the current regulatory requirements and recognized best practices regarding board refreshment. Join us for a webinar roundtable discussion of board refreshment practices, including discussion on:
- Best practices for board and director refreshment. How do regulatory requirements impact current board practices?
- How boards can successfully engage in board refreshment when there is little enthusiasm for the process on the part of directors.
- The extent board self-evaluations actually result in board refreshment and other corrective action. Are other strategies, like age or term limits, effective?
- How boards can conduct candid director performance reviews without fear of retaliation or blowback from their candor.
- How rotation of board leadership can yield new perspectives valuable to the business without losing the historical perspectives of long-term directors.
Vice Chairman, Board of Trustees, Drexel University
Vice President and Corporate Secretary, Mondelez International, Inc.
Governance Technology Evangelist, Diligent Corporation