What keeps directors up at night?
- How do our board practices compare to our competitors?
- What are boards in our peer group doing to create sustainable, competitive advantage?
- How are companies in our industry and sector handling Dodd-Frank?
- Is our director compensation package too lavish?
- Do we have an adequate succession plan in place to lead our organization through a sudden change in leadership?
- Have we adopted the kind of internal codes that set the right tone at the top?
- Is our board’s composition optimal, and do we have the right board leadership structure in place?
These are the kind of questions that can keep an honest and committed corporate director up at night. In this age of heightened public scrutiny, the answers to these questions can mean the difference between success and failure—and between acclaim and scorn.
Great news: NACD recently introduced one of the world’s only customizable, fact-based and data-driven board benchmarking analysis. “Every board, including mine, should conduct an annual board benchmarking analysis to optimize their board practices,” said Rich Daly, CEO of Broadridge Financial Services, Inc.
NACD offers a comprehensive assessment that allows corporate boards to determine how they stack up against other boards and gives them actionable steps to improve any shortcomings. The NACD Custom Board Benchmarking Report provides data on nearly 70 board practices, including board priorities, board size, use of independent consultants, ethics codes, executive compensation metrics, CEO succession plans and more. The data is broken down for twenty-four industries. Depending on a board’s interests, the data can be analyzed by a number of criteria, including industry, company type (public and private), listing exchange and market cap.
It is a one-of-a-kind tool that helps boards figure out what they are doing right and where they can make improvements. A company can determine, for example, if its failure to hire an independent consultant for a given task places it outside of normal industry practices. That valuable bit of information can help directors avoid trouble down the road.
The NACD Custom Board Benchmarking Report enables directors to strengthen their organizations by identifying new areas of interest and cutting-edge practices among their peers at other companies and in other industries. This service also helps directors build robust boards that can withstand the vicissitudes of the marketplace—boards that can establish a clear vision and mission to move their businesses far into the future.
By eliminating the trial and error in the boardroom, this customized reporting service helps corporate directors to advance exemplary board leadership.