WASHINGTON, Aug. 24, 2011 /PRNewswire/ -- Directors of public companies are strengthening their boards' structures, processes and commitment to director professionalism. These findings, among many others, were revealed in today's release of the 2011 NACD Public Company Governance Survey. The 2011 survey provides insights from nearly 1,300 public companies and 2,400 proxy statements on a wide range of issues including shareholder communications, CEO succession planning, director competence, proxy disclosure requirements and executive compensation.
"The results of the NACD survey indicate how engaged directors can create strong boards and help create strong companies—which are essential for our country and our economy today," said Kenneth Daly, CEO and president of NACD. "The 2011 NACD Public Company Governance Survey provides an inside look at how companies are navigating recent legislative reforms and market instabilities. It also provides directors with a practical tool and resource to evaluate how their company's board is structured and performing, compared to its peers."
Some of the key survey findings include the following:
- The board's role in overseeing strategic planning, corporate performance and valuation are top priorities for the majority of respondents.
- Nearly 70 percent of respondents characterize their company's long-term strategy as "balanced," with moderate risk and moderate expected reward.
- Directors believe the governance structures and practices are already in place to enhance their ability to effectively and efficiently fulfill their duties.
- Opportunity exists for most boards to formalize their CEO succession plans.
- Nearly one-third of respondents feel the current disclosure requirements for corporate governance are "excessive and should be reduced."
The data also illustrate that boards are constantly thinking about how to be strategic assets for the companies they oversee. When recruiting new directors, the most sought after skill sets are leadership experience, specific industry experience and financial expertise.
Most of the 1,300 respondents' companies are listed on the NYSE or NASDAQ stock exchanges. Nearly a quarter of the respondents sit on boards of public companies in the financial sector, followed by information technology companies. Companies of all sizes are represented in the survey, from market capitalization of more than $200 billion to less than $50 million.
NACD has been compiling public company governance data over the past 20 years and has a comprehensive analytical database to compare attitudes and trends year-to-year, as well as by company size and sector. Data from the survey is also used to create the comprehensive NACD Custom Board Benchmarking Report , which enables boards to compare their current structures, practices, strategies and policies to their industry and peer group companies.
For a copy of the 2011 NACD Public Company Governance Survey, please go to www.NACDonline.org/PublicSurvey or call 202.775.0509.
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 kkdodd@NACDonline.org or 202-380-1891.
Henry Stoever, Chief Marketing Officer
National Association of Corporate Directors
SOURCE National Association of Corporate Directors