To ensure good governance practices, Board members must acknowledge and adhere to three primary fiduciary duties, which was the message that I recently delivered in education sessions to public pension plan trustees and board members for not-for-profit organizations.
Global Governance Advisors (GGA) includes “giving back to our community” as a core value of our corporate culture. The GGA staff identifies meaningful programs and partnerships that empower individuals living with developmental disabilities and youth in under-served communities. Our corporate philanthropy focuses on three areas:
Board assessments are a powerful tool that can be used to evaluate the ongoing performance of your Board and ensure that you are following proper governance practices.
Board assessments can range in scope from simple, post Board meeting questionnaire of 5 to 10 questions on how to improve future meetings to detailed reviews at the end of the year that cover not only Board performance, but also director’s views on Committee performance and their peers’ performance. While organizations tended to conduct these types of assessments internally in the past, more and more organizations are relying on independent third parties to help them during the assessment with 45% of Boards reporting the use of consultants during their Board assessment, according to a recent Global Board survey, conducted by InterSearch and Board Network.
There is a wide array of organizations that exist in the market place:
- privately-owned/publicly traded
- public sector/private sector
And unfortunately, with this variety, there tends to be a false assumption that there shouldn't be a similar array of board governance standards.
The truth is that ALL Boards of Directors operate under the same three fiduciary duties:
Industry trends have shown a significant shift towards a paperless Boardroom. While some boards choose to streamline their communication by Board Software Communication, others have simply ignored the trends and continue to use email to fulfill their needs.
Email might prevent added costs to board operations, but it also proposes more potential downfalls and risks because email:
CEO compensation governance is fast paced, and it can be seemingly impossible to stay ahead of the ever-changing industry trends. The industry tends to move so quickly that a seasoned executive may not even be aware that they are at risk for creating a Board that is non-compliant when creating dynamic incentive plans for the CEO and other key senior managers.
“Given the pace of business change today, companies increasingly need agile boards with the expertise to guide the company amid emerging threats and opportunities. And investors increasingly expect that boards will embrace rigorous practices to ensure they have the right expertise in the boardroom to respond to evolving market and competitive demands. The highest-performing boards will adopt a continuous improvement mindset, ensuring that their composition evolves in light of new strategic imperatives.” AESC.org