NACD Renews Gold Standard for Corporate Director Performance
To align with the changes brought on by the Dodd-Frank Act, NACD updated its most widely read publication, the Report of the NACD Blue Ribbon Commission on Director Professionalism. The report has served as the gold standard for the roles and responsibilities of corporate directors over the past 15 years and is the go-to guide for directors, corporate secretaries, general counsels, accounting firms, law firms, universities, and other corporate governance leaders.
The idea of “director professionalism” was pioneered by NACD with the original release of this landmark Blue Ribbon Commission (BRC) report. It is based on the understanding that the board is at the center of corporate governance, and the actions and attitudes of the individual board members shape the culture of the board. So, to build an effective board, directors must take their responsibilities seriously and work together as professionals.
The Director Professionalism BRC report focuses on four main areas that a board should consider and work collaboratively together to accomplish:
- Responsibilities: What the board should do
- Processes: How the board fulfills those responsibilities
- Selection: Who the directors should be
- Evaluation: How the boards and individual directors should be judged
Increased scrutiny on governance practices and additional demands being placed on public company directors inspired the re-issue of this report. The new version takes into consideration regulatory changes, including Dodd-Frank, say on pay and new SEC disclosure requirements for proxy statements, enabling directors to stay current on corporate governance practices.
The Report of the NACD Blue Ribbon Commission on Director Professionalism lays the foundation for a number of NACD programs and services, including the Director Credentials Program, which helps directors demonstrate their commitment to boardroom excellence, and NACD’s new Board Benchmarking Analysis Tool, which allows boards to benchmark their governance structures and practices against their peers.
The landscape for companies has changed more dramatically over the past 24 months than at any point in recent history. That makes NACD’s ongoing work to drive director professionalism more relevant than ever in helping boards meet new challenges. Leading authorities and experts, including members of the United States Congress and the Delaware Supreme Court, have referenced BRC reports and their detailed information about leading boardroom practices.
To receive a copy of the updated Report of the NACD Blue Ribbon Commission on Director Professionalism, visit http://www.nacdonline.org/Store/ProductDetail.cfm?ItemNumber=3721.