It really is time our industry had a Code of Practice for Board Evaluations. Companies need guidance to get through these troubled times. So it was good news to read that the Business Secretary Greg Clark announced – as part of the insolvency safeguards – measures to develop a code of practice for external board evaluations. (see press release)
Advanced Boardroom Excellence has a long history in developing a Code of Practice (Code). Over five years ago Sir David Walker – then Chairman of Barclays – asked us to work with key suppliers in the board evaluation sector, Chairman, NEDs and interested parties such as Legal & General to develop the Code. We therefore consulted widely with the aim of introducing high professional standards in a rapidly-developing sector and to give chairmen, company secretaries and key stakeholders assurance, greater clarity and guidance.
After its development we passed the Code onto ICSA: The Governance Institute for wider consultation in conjunction with Tomorrow’s Company. We wanted to avoid any conflicts of interest. So whilst it is good news government has invited ICSA to convene a group of companies and investors to develop a Code it should be noted ICSA also provide Board Evaluation services.
The Code we produced was comprehensive and felt to be relevant at the time. Both ICSA and Tomorrow’s Company due to other commitments did not carry out the requested wider consultation, doubtless this will now happen building on the draft we already produced.
The measures set out by the government will be fleshed out in detail in the autumn as a response to corporate governance and insolvency consultation launched in March 2018. To read more about this click here.
The origins of this government review come from the work conducted by Lintsock and Legal and General Investment Management in their report “15 Years of Reviewing the Performance of Boards”. While their report wasn’t a Code of Practice one of its findings was a need for a common Code.
Advanced Boardroom Excellence feels our industry would benefit from a common Code of Practice for External Board Evaluations. This would help guide Boards to foster an environment of ethical behaviour, openness and build trust among employees and investors.
More guidance will help foster better Board Governance across all industries.
Read more about Advance Boardroom Excellence’s Code of Practice: