We’re all familiar with the three primary board committees (i.e., Audit, Compensation, and Nominating/Governance)… but have you ever heard of the Digital Transformation Committee or the Value Enhancement Committee? How about the Benefits Equalization Plan Administrative Committee? In fact, there are more than 800 uniquely named board committees, according to the latest Equilar data, which were each formed to address an issue that board members felt was critical to company success.
In this episode, regular host TK Kerstetter swaps seats once again with Ty Francis MBE, Ethisphere’s Executive Vice President of Global Programs, who serves as the guest host for this discussion about unconventional board committees. Kerstetter explains how new and targeted board committees are being formed at a faster rate than ever before, and the value proposition is simple: to address the many areas of board oversight that are emerging or evolving.
There are [few] rules when it comes to the types of committees you can form. Find out what meets your business needs. As long as you have independent directors, and you have the ability to staff those committees… nothing prevents you from having a committee that’s important to the board [and] contributes to the success of the company.
In this episode, Kerstetter and Francis address several questions:
- What underpins the rise of these unconventional board committees?
- What kind of new committees are being formed among public company boards?
- How are the qualifications changing for today’s board committee chairs?
- What advice would you offer today’s boards considering the formation of new committees?