Managing the Most Sensitive of Board Accountabilities
Directors, especially of public companies, have a fiduciary duty to their company. It is critical that your directors are fully engaged, productive, relevant, and a positive influence on the board and the company. But not all directors fit that mold. Some may simply be tired or too busy. Or perhaps they are disruptive to discussions. Or the board’s needs may have simply shifted. In any case, individual director evaluation is one of the most critical, and the most sensitive, of all board accountabilities. And, in today’s environment, it is expected and rewarded. Are your directors prepared for such accountability?
The Director Index is designed to help directors become more effective. Ours is the only objective, board-driven, anonymous, confidential, and web-based evaluation solution to help individual directors optimize their performance.
- Improve Performance –Our report enables your committee to establish a baseline and benchmark against internal metrics and best practices.
- Respond to Key Metrics – Our Indexes are customizable for your company and situation, to respond to any key metrics that you need.
- Fulfill Annual Evaluation and Director Educational Mandates – TBI is accredited by RiskMetrics/ISS, allowing you to assess your board and fulfill director continuing education requirements simultaneously.
- Make Better, Clearer Decisions – Our process helps directors identify and understand strengths and areas to improve,
- Avoid Mistakes – Contrary to other approaches, TBI is objective, independent, and comprehensive. With complete security, anonymity, and confidentiality, directors can answer freely and candidly, resulting in a valid report.
How does it work?
The Board Index is a user-friendly process that can be facilitated internally or by an outside consultant who works with the board to develop an action plan to respond to any issues raised. .
Step 1: Board members (and others, at the board’s discretion), anonymously, confidentially, and securely complete a comprehensive, online questionnaire. This takes approximately 15-20 minutes. Upon completion, drawing on scientific methodology, the questionnaires are compiled and scored.
Step 2:A report of the results and analysis is immediately available to your evaluation administrator and other key stakeholders, as the board determines appropriate, either online or on paper. The report, which is a composite and provides no identifying information about individual respondents or the company, consists of:
- An overall Board Index score, feedback about board structure and composition, the role of the director, and leadership of the board.
- Top 5 strengths, the five areas to improve and response ranges.
- A detailed inventory of specific questions with scores, ranges, comparisons, and anonymous comments, together with targeted best practices, stock exchange requirements, regulatory rules, and relevant Sarbanes-Oxley mandates.
It’s as simple as that.