How often should a nominating and governance committee evaluate board performance?

The frequency with which a nominating and governance committee evaluates board performance is crucial for ensuring that the board remains effective and dynamic in its oversight responsibilities. Evaluating board performance regularly, at least annually, allows for ongoing assessment of how well the board is fulfilling its responsibilities and adapting to changing circumstances in the organization or industry. This kind of regular evaluation fosters a culture of accountability and continuous improvement, enabling the board to identify areas for enhancement and to address any issues proactively before they escalate.

Annual evaluations can be structured to include feedback from individual directors, self-assessments, and possibly external assessments, which collectively provide a comprehensive view of the board’s performance. This process not only supports the development of individual directors but also enhances the overall effectiveness and governance of the board.

Evaluation only during the renomination process, as suggested by another choice, overlooks the need for consistent performance tracking and improvement throughout a director's term. Similarly, infrequent evaluations or conducting them solely when new members join the board fails to build on the experiences and innovations that can emerge from regular feedback and discussions. A holistic approach to evaluation is necessary for sustaining high standards of governance and ensuring that the board can respond effectively to its strategic challenges.