Your board should adhere to the highest standards when it comes to corporate governance. It’s not enough to just tick the right boxes and comply with the minimum standards. A solid board must continually review its own performance in order to discover ways to improve. This is how top-performing boards can stay ahead.

One important governance best practice is to help shareholders to know the board’s role, duties, and the accountability. This board room deluxe com includes explaining how the board’s compensation aligns with the strategic goals of the company and also defining what constitutes effective oversight as well as an effective system of checks and balances.

Another important aspect is having an established framework to manage the risks of the company. It is essential to comprehend the company’s risk profile as well as the short- and long-term. Then, collaborate with the board to decide how it will assess the risks. It is also essential to ensure that the board has the necessary tools to recognize the risks. This includes internal factors, such as cultural practices and poor communication between directors.

Listening to the concerns of shareholders is also essential. Encourage participation. This is particularly crucial in the current environment of increased shareholder activism. Boards, for instance engage with shareholders to discover and address the shareholder discontent long before the proxy season begins.