NACD Report Reveals Private Company Board Trends And Insights

WASHINGTON, Oct. 1, 2021 /PRNewswire/ -- The National Association of Corporate Directors (NACD), the authority on boardroom practices representing more than 22,000 board members, today released the 2021 Inside the Private Company Boardroom report, which provides data and insights on private company board compensation and board structure. Based on an annual survey of NACD members on boards of for-profit, privately held companies, the report offers insights into critical board priorities; current practices in areas such as board diversity, structure, and compensation; and increased adoption of key standing committees—such as audit committees—as cyber risk takes center stage.

"This report is a unique and valuable resource for boards who are seeking a broader understanding of today's rapidly evolving corporate landscape and affirmation that their governance practices are effective, fit for purpose, and clearly communicated to stakeholders," said Peter R. Gleason, president and CEO of NACD.

As private companies increasingly professionalize their boards and engage independent voices to bring new ideas to the boardroom, the report offers key findings to help boards assess their priorities and flex to meet organizational, stakeholder, and community needs.

Outlined below are highlights from the report's key findings: 

• Board Committees: Private company boards are increasingly adopting committee structures typical of public company boards. This includes the audit committee (from 79% to 88% adoption), the compensation committee (77% to 83%), and the nominating/governance committee (56% to 62%).
• Private Company Board Composition: Thirty-seven percent of respondents indicated that they have recently appointed a board candidate from an underrepresented group, up from 31 percent in 2020.
• Independent Director Compensation: In the past year, the average retainer for an independent director increased slightly (by 1.3%) to $56,928.
• Family-Owned Boards: In addition to the statutory board, nearly half (49%) of family business boards indicated that their organization has a family council in place to manage conflicts/concerns among family members.

To download your copy of the key finding from the report, visit https://www.nacdonline.org/insights/publications.cfm?ItemNumber=72631.

About NACD's 2021 Inside the Private Company Boardroom report:
Data presented in the 2021 Inside the Private Company Boardroom was collected in a survey of NACD members serving on boards of for-profit, privately held companies. It was in the field from late May to early June of 2021, and the data collected was analyzed to create a snapshot of the structure, composition, and compensation practices of these boards.

About NACD
For more than 40 years, NACD has been on the leading edge of corporate governance, setting standards of excellence that have elevated board performance. NACD arms today's directors with insights and education that drive their mission forward, while preparing a new generation of boardroom leaders to meet tomorrow's biggest challenges. NACD is a community of more than 22,000 directors driven by a common purpose: to be trusted catalysts of economic opportunity and positive change—in businesses and in the communities they serve. To learn more about NACD, visit www.nacdonline.org.

Contact:
Susan Oliver
[email protected]  
703-216-4078

SOURCE National Association of Corporate Directors

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