ICSA publishes annual survey on board performance evaluation
20 February 2009
The Institute of Chartered Secretaries and Administrators (ICSA) has issued its survey of annual report disclosures made by FTSE 200 companies in the area of Board performance evaluation.
Its findings include:
- The number of companies which undertook some form of externally-developed or managed evaluation process had increased from 16 per cent in 2007 in to 21 per cent in 2008.
- An issue identified in last year’s report – the failure of certain companies to distinguish between a review of the performance of executive main board directors in their capacity as members of the top management team and as a member of the board – has been virtually eliminated.
- Company reports were generally more informative in 2008, and seemed to reflect a desire on the part of boards to improve their performance.
Simon Osborne, ICSA’s Joint Head of Board Evaluation said
“More widespread use of external valuation will no doubt be driven by investors who will be looking for hard evidence of well-run boards in an uncertain economic climate.’