Getting real value from board assessments: Beyond “check the box”

Overview

Most directors have completed board and committee assessments for years as required by stock exchange listing standards. Fewer boards conduct individual self-assessments; only about a third of S&P 500 boards evaluate the full board, committees and individual directors as part of their annual assessment process. While some boards are quite good at conducting these assessments, others could stand to get more out of the exercise. The biggest roadblocks? Viewing it as a compliance exercise, using an approach that doesn’t really allow for honest feedback and failing to follow-up on the results. We explore five key actions to ramp up the board’s next annual assessment.