NACD Highlights Growing Need for Succession Planning and Diversity in the Boardroom

WASHINGTON, March 22, 2012 /PRNewswire/ -- Continuing its mission to identify, interpret and provide unique insights, intelligence and guidance on matters worthy of boardroom dialogue, the National Association of Corporate Directors (NACD) today announced the findings of its 13th Private Company Governance Survey. The survey reveals key trends about board practices and governance processes of the top private companies in the U.S.

The NACD Private Company Governance Survey details the most critical governance issues facing today's private companies, and this data fuels NACD's Board Benchmark Report Service which enables directors and management teams to gain insights about how their company's governance structures and processes compare to their peers and competitors.

"NACD's primary roles are to identify key issues worthy of discussion in the boardroom, provide the relevant resources for directors to deepen their understanding and awareness of these issues, and to provide guidance for boards to translate them from opportunity to reality, " said Ken Daly, President and CEO of NACD. "Powered by in-depth data from NACD's public and private company governance surveys, our Board Benchmarking Report Service provides boards with an invaluable resource to compare and optimize their boards versus their peer group companies and industries."

NACD's Public Company Governance Survey highlights the need for more effective succession planning, as only 23 percent of private company boards report that they have formal succession plans in place, 25 percent of private companies have no succession plans at all, and 52 percent have only an informal succession plan. Notable statistics included in this year's report underscore the need for ongoing director education; 90 percent of respondents believe such programs enhance the board's effectiveness. 

Perhaps most startling findings were new statistics on boardroom diversity, which highlight a significant deficiency of minority and female directors. Only one-third of private boards currently have at least one female director, with only 17 percent having three or more. With regard to minority directors, only 20 percent have at least one minority director serving in the boardroom, and 63 percent report having none at all.

Results are compiled based on feedback from 841 private company responses to NACD's annual governance survey. In analyzing the data, NACD calculated response percentages based on the total number of answers to each specific question. Directors who serve on multiple boards were encouraged to fill out a survey for each.  The full 2011 report also compares data from the 2010 report, providing greater utility in tracking overall governance trends. 

NACD's Private Company Governance Survey may be purchased at www.NACDonline.org/PrivateSurvey2011.

About NACD

The National Association of Corporate Directors (NACD) is the only membership organization delivering the information and insights that corporate board members need to confidently confront complex business challenges and enhance shareowner value. With more than 11,000 members, NACD advances exemplary board leadership. NACD is focused on creating more effective and efficient boards through director-led education and peer forums to share ideas and leading practices based on more than 30 years of primary research. Fostering collaboration among directors and governance stakeholders, NACD is shaping the future of board leadership. To learn more about NACD, visit NACDonline.org. To join, please contact Kelly Dodd at [email protected] or 202-380-1891.

SOURCE National Association of Corporate Directors