February 16, 2016
Board effectiveness is a dominant theme in corporate governance – a well-thought-out evaluation process allows directors to assess and improve that effectiveness.
Boards have turned to outside advisors to assist them with the evaluation process for many years. The impact that a skilled expert can have on the quality of an evaluation has led regulators and governments around the world to encourage more boards to adopt this practice. This is reflected globally in the G20/OECD Principles of Corporate Governance, and here in Canada in OSFI’s Corporate Governance Guideline. The use of outside advisors as part of the evaluation process for boards of public companies has been mandated in several jurisdictions, including in the United Kingdom.