
Sustaining Boardroom Performance: How Great Boards Stay Great
In 2016, RHR International—in conjunction with the NYSE Governance Services—conducted a study to survey board directors and explore their renewal practices in more depth. This was follow-up to a 2014 study that found great boards must continually refresh and renew themselves to sustain a high level of contribution over time.
The response to the 2016 survey was quite strong; in all, 620 directors who collectively offered information on approximately 900 boards returned completed surveys. In addition to their responses to survey questions, directors shared their views in hundreds of written comments.
While renewal doesn’t automatically equate to director replacement, shareholders expect boards to contribute sustained value by directing the company to seize opportunities and manage risks. To do so, boards must continually evolve and adapt to the changing environment in which they operate.