Scoping an evaluation

Setting clear objectives is key to the success of the evaluation, and whereas this has traditionally fallen within the remit of the Company Secretary we are increasingly seeing Compliance Directors and Internal Audit involved in specifying deliverables, including the regulatory requirements, Board development and stakeholder needs.  

If your firm is a FTSE 350 you’ll need to align any evaluation with the FRC UK Corporate Governance Code (the Code) which states: B.6: Evaluation - Main Principle The board should undertake a formal and rigorous annual evaluation of its own performance and that of its committees and individual directors. B.6.2. Evaluation of the board of FTSE 350 companies should be externally facilitated at least every three years.  

An internal, externally-facilitated or full external evaluation can contain a whole range of evaluation tools, including:

  • Review of Board documentation
  • Review of Board Control Manual
  • Individual questionnaires
  • Individual interviews
  • Review of Board meetings
  • Review of Sub-Committees

For a thorough evaluation Boards need to pay particular attention to those issues that have come to the fore through the various reviews and investigations that have followed the global economic crisis:

  • The role of Chairman
  • How the Board spends its time
  • Suitable challenge on issues
  • The role, responsibilities, suitability and contributions of Board members
  • Board member support and ongoing development
  • Board composition and diversity

The reality is the scope and best route for an evaluation is bespoke to each Board and organisation.

BP&E tailors every evaluation to our clients, immersing ourselves in your organisation offering tangible recommendations that can have a significant impact on the effectiveness of your board

To find out more about our approach to evaluations click here, you can also visit our review Facilitation page.

I think all those who met you enjoyed the interviews, and felt that you were very good at drawing them out in a relaxed, but nonetheless searching way. The end result, from my point of view, is both useful and practical. You have drawn out some very important high level issues, as well as a number of practical down to earth steps to help us improve our processes.
Chairman, Investment firm

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