An exemplary director acts with integrity and courage in complex, often risky situations. Honored directors have demonstrated dedication to the improvement of corporate governance practices, and have cultivated a reputation as a leader among peers in the business community. By recognizing those directors who are dedicated to the success of the companies, boards, and shareholders they serve, NACD hopes to raise the bar for all directors.
Nominees are evaluated on four key attributes based on the principles of director professionalism: integrity, mature confidence, informed judgment and high performance standards. Winners have demonstrated these principles in a variety of ways, including:
Showing the highest personal and professional ethical standards;
Valuing board and team performance over individual performance;
Acting in ways that have guided their company in maintaining consistent long-term profitability,
Improving shareholder returns, and/or dealing effectively with a crisis or other major change;
And fostering an environment of constant improvement of strategic goals, performance and innovation.
In a New York Times (Nov. 30) article published in Wednesday’s NACD Directors Daily, columnist Stephen M. Davidoff commented on the SEC’s Concept Release on the U.S. Proxy System.
Davidoff highlighted how companies that are generally averse to government regulations are calling for additional rules for proxy advisory firms like Institutional Shareholder Services (ISS). These companies see a conflict of interest for proxy advisory firms that often offer both voting recommendations and advisory services.
In alignment with the NACD Key Agreed Principles of independence and transparency, NACD agrees that proxy advisory firms should be subject to enhanced disclosure regulations. On October 20, we submitted a comment letter to the SEC on the Concept Release, covering proxy advisory firm independence, as well as NOBO/OBO voting (see the Council of Institutional Investors summary of NOBO/OBO here). The comment letter includes recommendations for the separation of businesses that offer both shareholder voting and corporate governance advice.
According to a Bloomberg report featured in Wednesday’s NACD Directors Daily, a daily e-news briefing for members of the National Association of Corporate Directors (NACD), a Young Presidents’ Organization survey indicates that chief executives in the U.S. were more positive about the economic climate at the start of the fourth quarter. According to the survey, CEOs expect stronger sales, increased spending on equipment, and generally better economic conditions in the coming months.
NACD president & CEO Ken Daly talks with CNBC about the NACD Board Confidence Index
NACD conducts a similar quarterly survey—the Board Confidence Index (BCI)—presenting the corporate director’s perspective. While directors felt that the economic conditions in the third quarter were much improved from one year ago, they were much less confident in forecasting the fourth quarter. When asked about their expectations for the fourth quarter in their own industry, the index score was 48—reflecting more negative than positive responses.