The why and when of a board refresh
What leaders does your credit union need for future success?
Not all directors are satisfied with the performances of their colleagues. More than a third of directors feel someone on their board should be replaced, according to the 2016 Annual Corporate Directors Survey conducted by PricewaterhouseCoopers. In the study, which provides new insight into the issues directors believe most influence board performance, some respondents name shortcomings like unpreparedness and lack of expertise as the source of their concerns, while others note age and the tendency to overstep boundaries.
All of this begs the question: How do you know when it’s time to refresh your board?
The Harvard Law School Forum on Corporate Governance and Financial Regulation has called board refreshment “a topic on fire,” advising public companies to consider it in the context of self-assessment, succession planning and shareholder engagement. In the interest of building and maintaining effective boards, here are some of the factors that influence a board refresh, along with when companies should seek new directors.
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