Best Disclosure: Board Evaluation

This publication explores a cornerstone of American corporate governance: the board of directors. Appointing a board of directors is an effective way to ensure a firm complies with shareholders' expectations. However, over time a board of directors may become complacent. Board evaluation can be used to assess the productivity and performance of the board, and keep the board of directors accountable to the stakeholders. For this process to be efficient, the findings of board evaluations should be openly disclosed to all shareholders. This report discusses the background of board evaluations and disclosures, and seeks to expand upon two processes under which disclosure can occur.