Board evaluations are an essential practice of any effective board, not to mention a requirement (NYSE listed) or strongly recommended practice (Nasdaq listed) by the world’s largest stock exchanges. Determining the best process for your board, however, can be a challenge with various factors to consider: What’s the best evaluation format for our board? Should we use an outside facilitator? Should we include committee evaluations?
Today’s boards must look at the evaluation process holistically. The first step is to define the objectives (i.e., What is the board hoping to achieve through this evaluation process?) and then map out a plan that considers peer reviews, committee reviews, and whole board evaluations over a specified time horizon. At least every third year, boards should be enlisting the help of an objective outside facilitator, which is why Boardroom Resources often helps its clients develop a three-year plan detailing evaluation formats and frequency.
To determine whether our approach to board evaluations is the right fit for your company, we’ll engage in a discovery call to understand the needs of your board, its recent evaluation history, and any other obstacles or unique objectives. Next, we’ll make our preliminary recommendations for scope, frequency, formats, and an estimated budget—and we’ll describe our planning and execution process in more detail. Your board will then have the opportunity to determine whether Boardroom Resources is the best solution for your evaluation needs.
Our governance expert, TK Kerstetter, will be at the forefront of all client interactions throughout the discovery and board evaluation process. Kerstetter is the previous Chairman of NYSE Governance Services and a co-founder of Corporate Board Member. Now serving as the host of Inside America’s Boardrooms (a board governance web show filmed at the Nasdaq MarketSite), Kerstetter has both CEO and corporate board experience having served as president and board member of a publicly-held bank. The experience of sitting on both sides of the table allows him to skillfully guide boards through what can often be a sensitive or trepidatious process.
Kerstetter’s unique career path and engaging reputation have primed him for the nuances of the board evaluations process—from the design of evaluation tools to the gathering of information to the critical assessment of results. There’s no substitute for experience.
It is hard to think of a more knowledgeable, influential, and important participant in the corporate community than TK. [He has the] skillful ability to steer discussions among diverse participants towards a better understanding of what works in corporate governance and in the hurly-burly world of business.
As always, we’re available to travel wherever your company decides is the best venue for your board evaluation. However, for boards that are looking the streamline the evaluation process, we offer the opportunity to accomplish a facilitated board evaluation during one of our Board Retreat experiences. Boardroom Resources operates an all-in-one board retreat program, in which accommodations, speakers, and governance sessions are coordinated and tailored to the board’s specific needs. Those who take advantage of our Board Retreats program have the opportunity to add on additional board services (e.g., board evaluations, shareholder engagement videos) at reduced rates, given that our cost of travel and coordination will be minimized.
Take the Next Step.
Are you looking for more information? Ready to take the next step? Simply click here to reach out to the Boardroom Resources team. We look forward to learning more about your board and discussing how our approach to board evaluations can meet your objectives for improved governance and performance.