Corporate boards are under pressure like never before – the result of public and regulatory pressure in response to the Enron meltdown (Sarbanes-Oxley) and the Great Recession (Dodd-Frank).
Is your board strong enough to withstand such scrutiny?
To answer that, begin by considering this: A corporate board is only as good as the people who serve on it and their ability to work together effectively. Weak or ineffective board members, or directors who are unable to collaborate for the good of the company, can make corporate governance dysfunctional and ineffective.
The purpose of the Nominating and Governance Committee is to nominate directors to the board and ensure the board is practicing effective governance. Acting as the board’s gatekeeper, this committee is one of the most important on any board.
In addition, this committee serves a watchdog role over the board's governance practices. Other responsibilities often include:
A strong Nominating and Governance Committee ensures the board is in a state of on-going self-improvement.
The strength of the Nominating and Governance Committee correlates to board success. It is the difference between a board that is merely "going through the motions" and one that functions as a finely-tuned machine.