With the ever-increasing demand put on Companies and their boards by a multitude of stakeholders, board evaluations have become critical in driving continuous improvement in board performance. A well-executed board evaluation can help to provide real insights into how a board operates, interacts with one another and the company as a whole. A board assessment should focus on evaluating the board composition, setting and monitoring board culture, improving board practices and planning for board succession.
King IV recommends that a formal process be adopted for the annual board evaluation, be it externally facilitated or not. King IV further recommends that the board should schedule in its yearly work plan, an opportunity for consideration of its performance and that of its committees and its chairperson.
The board evaluation process should strengthen board oversight, corporate governance and provide an opportunity for continuous development for directors and boards. With the assistance of Statucor we can turn board evaluations into something valuable.