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1 – 10 of over 57000Abdus Sobhan and Emmanuel Adegbite
This study aims to examine the influence of the following on the quality of externally facilitated board evaluation, namely, the timing of adoption of external board evaluation…
Abstract
Purpose
This study aims to examine the influence of the following on the quality of externally facilitated board evaluation, namely, the timing of adoption of external board evaluation, type of evaluators and the independence of external facilitators.
Design/methodology/approach
The statements on board evaluation in annual reports of a sample of FTSE 350 companies were content analysed to measure the quality of externally facilitated board evaluation. This paper then used descriptive analysis and inferential statistics to demonstrate the possible association between the timing of adoption, as well as the type and independence of external facilitators and the quality of externally facilitated board evaluation.
Findings
Results reveal some effects of the timing of adoption, as well as the type and independence of external facilitators on the quality of externally facilitated board evaluation.
Practical implications
Shareholders should be aware of the timing of adoption, as well as consider the types and independence of external facilitators, given their influence on the quality of externally facilitated board evaluation. Regulatory authorities should provide more specific guidance on what types of professional organisations can be engaged as external facilitators and on the implementation of externally facilitated board evaluation, to promote its quality.
Originality/value
Several studies have provided theoretical accounts on how board evaluation should be conducted to ensure its effectiveness. However, there is a dearth of empirical literature, which examines the quality of externally facilitated board evaluation. This study develops a quality measure for externally facilitated board evaluation and shows the effect of the timing of adoption, types and independence of external facilitators on its quality. The study forges ahead institutional theorising of external board evaluation.
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Donald Nordberg and Rebecca Booth
This paper aims to examine how board evaluations have emerged as an important tool in public policy and corporate practice for enhancing board effectiveness.
Abstract
Purpose
This paper aims to examine how board evaluations have emerged as an important tool in public policy and corporate practice for enhancing board effectiveness.
Design/methodology/approach
The authors review the extensive literature on effectiveness and the emerging literature on board evaluation to identify ways to assess the current policy direction for external evaluation of corporate boards.
Findings
The paper develops an integrated framework of effectiveness that can be used as a tool for board evaluation, in particular for externally facilitated exercises.
Research limitations/implications
Through its integration of prior conceptual work this paper advances our theoretical understanding of this emerging part of policy and practice, with to-date lack much empirical basis.
Practical implications
The framework that is developed shows ways to focus how the practice is conducted by boards and external evaluators alike.
Social implications
It can also help policy formation by pointing out the limitations as well as benefits of various policy options.
Originality/value
In pointing to ways to develop study of the field through empirical research, it provides direction for future academic research. It also identifies a need for and direction toward the professionalization of practice.
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Tor Brunzell and Sten Söderman
The purpose of this paper is to study if and how the evaluation of the boards in the top Nordic male football clubs affects the boards’ composition and work.
Abstract
Purpose
The purpose of this paper is to study if and how the evaluation of the boards in the top Nordic male football clubs affects the boards’ composition and work.
Design/methodology/approach
The study includes all the clubs in the two top divisions in each of the five Nordic countries (Denmark, Finland, Iceland, Norway and Sweden). The study makes use of a questionnaire where 66 (out of 145) chairmen answer 17 questions concerning the board composition and work on a five‐point Likert‐scale.
Findings
The responses were related to whether the board is annually evaluated or not. Descriptive statistics demonstrates that more than half of the clubs have an annual board evaluation. Most common is that the Chairman performs the evaluation himself/herself with help from designated board members; the evaluation being performed through informal discussions. A total of 44 clubs have a nominee committee. Almost all of the clubs transfer the result of the board evaluation to its nominee committee, most commonly verbally. Furthermore, results show that board evaluation has a significant positive effect on the following functions of football boards: review of business plan, strategy, objective and budget; discussion on short‐term development; discussion on long‐term development; and work efficiency.
Originality/value
The results of this study are consistent with a similar study of listed Nordic companies. The main difference between the results of the two studies is that clubs, unlike publicly listed companies, almost always perform the evaluation through internal interviews rarely using external consultants and individual anonymous questionnaires.
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Ahmed Hussein Aly and Mohamed Elsayed Mansour
The purpose of this paper is to develop a method for evaluating the sustainable performance of corporate boards using the balanced scorecard approach. Also, the paper aims to…
Abstract
Purpose
The purpose of this paper is to develop a method for evaluating the sustainable performance of corporate boards using the balanced scorecard approach. Also, the paper aims to determine the need and relevance of the proposed method in the evaluation process by testing the differences in the relative importance of the proposed method measures on a sample of the Egyptian manufacturing companies.
Design/methodology/approach
Data were collected using a questionnaire list and personal interviews with three different population samples: board members, managers of manufacturing companies and financial analysts in brokerage firms. The Wilcoxon signed rank test was used to test the degree of approval on the related questions, and the Kruskal–Wallis test was used to test the differences among the responses of the three samples.
Findings
The results of the statistical analysis indicate that there is a need for companies to have an effective tool to evaluate the board performance, and that the proposed method is a suitable tool for the evaluation. Also, the results indicate that there are differences in the relative importance of the performance measures among the three samples.
Research limitations/implications
The exploratory study focused on a sample of manufacturing companies only. Accordingly, service companies and financial institutions are outside the scope of this research. There was difficulty in accessing a sample of shareholders; instead, this sample was replaced by a group of financial analysts in brokerage firms.
Practical implications
The proposed method adds to the performance evaluation literature with regard to measuring and evaluating the performance of boards. The study provides an empirical evidence of the need to use the balanced scorecard in the board evaluation and its relevance for the evaluation process. It provides a short guide to the most important performance measures to be used in the evaluation process of the company’s board of directors.
Originality/value
Few studies have focused on evaluating the performance of the board of directors using the balanced scorecard. This study is an important attempt to evaluate the sustainable performance of the board of directors using the balanced scorecard by taking into consideration the corporate social responsibility perspective. The proposed board’s balanced scorecard provides a useful tool to evaluate the performance of boards using objective, specific and clear measures.
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Brooke Anderson and Brian H. Kleiner
Observes that, while most employees in any corporation receive an evaluation of some form from a supervisor, the CEO is often overlooked in the evaluation process, as it is quite…
Abstract
Observes that, while most employees in any corporation receive an evaluation of some form from a supervisor, the CEO is often overlooked in the evaluation process, as it is quite unusual for a company to have an evaluation process in place that may be effective. Posits it is the board’s responsibility to evaluate the CEO’s performance. Concludes CEO evaluation can be a time‐consuming process but only successful companies can implement this process properly.
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Haniye Sadat Sajadi, Mohammadreza Maleki and Steve Michael
A university of medical sciences (UMS) is governed by a board that serves analogously as a board of trustees or a governing board in the western countries. In Iran, however, such…
Abstract
Purpose
A university of medical sciences (UMS) is governed by a board that serves analogously as a board of trustees or a governing board in the western countries. In Iran, however, such boards operate under the broad leadership of the Ministry of Health and Medical Education (MoHME) but still wield enormous power over their universities. Given the influence boards have in the affairs of an UMS, the question remains how the medical university board can be improved so as to improve the overall effectiveness of these institutions. The purpose of this article is a response to this question by focusing on criteria necessary for reviewing board performance.
Design/methodology/approach
Using a qualitative approach, the study solicited data from 37 key informants that were purposefully chosen from 52 medical science universities across Iran. Semi-structured face-to-face and phone interviews as well as a review of relevant document were the main means of the data gathering. We performed the framework analysis using software ATLAS-ti (version 5).
Findings
The analysis identified 32 overlapping indicators that must be considered in a board performance. These indicators were reclassified and summarized into six categories, including trustees, trustees' leadership, board structure, board process, board output (short-length results) and board outcomes (long-length results).
Originality/value
Our study findings confirmed the role of the context and its relationship with the effective board performance. Here, the governing arrangement of all institutions including UMS is shadowed by the social, economic, cultural, political and technological status of the country. So, special attention is recommended to identify what should be considered to evaluate the performance of the board given the context.
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This article discusses the measurement and evaluation of board performance and how this is evolving in different organizations. The article finishes by describing one approach to…
Abstract
This article discusses the measurement and evaluation of board performance and how this is evolving in different organizations. The article finishes by describing one approach to board performance evaluation being pioneered in the United Kingdom.
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Although board expertise has been identified as an important determinant of board performance, some surveys are still reporting that the overall level of board expertise is…
Abstract
Purpose
Although board expertise has been identified as an important determinant of board performance, some surveys are still reporting that the overall level of board expertise is insufficient to carry out current and emerging roles. Consequently, companies must ensure that board members have the required skills and knowledge. This study aims to examine three board processes aimed at developing and improving board expertise.
Design/methodology/approach
Based on disclosures in the corporate governance guidelines of 100 leading US companies, the study focuses on three board processes, i.e. director nominations, orientation and education programs, and board performance evaluations.
Findings
Based on the initial findings, it is found that most companies in the sample were in compliance with stock exchange requirements and provided information on director nominations, orientation and education programs and board performance evaluations. All too often, however, the companies disclosed generic, non‐specific information; this provides little reassurance that the proper processes are in place to promote companies' long‐term interests.
Research limitations/implications
By examining these key board processes, the paper contributes to the governance literature by providing empirical evidence on this important topic and offering guidance to companies examining board processes aimed at improving directors' overall expertise.
Originality/value
By focusing on disclosures in corporate governance guidelines, the authors also gain insight into decisions made by companies under increased pressure from securities regulators and other stakeholders to provide increased transparency on governance issues.
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Sheila Jackson, Elaine Farndale and Andrew Kakabadse
In a review of the literature, supported by six case studies, executive development for senior managers in public and private organisations is explored in depth. The study looks…
Abstract
In a review of the literature, supported by six case studies, executive development for senior managers in public and private organisations is explored in depth. The study looks at the roles and responsibilities of the chairman, CEO, executive and non‐executive directors, the required capabilities to achieve successful performance, and the related executive development activity implemented to support these. Methods of delivery, development needs analysis and evaluation are explored in case organisations to ascertain current practice. A detailed review of the leadership and governance literatures is included to highlight the breadth of knowledge required at director level. Key findings of the study include the importance of focusing executive development on capability enhancement, to ensure that it is supporting organisational priorities, and on its thorough customisation to the corporate context. Deficiencies in current corporate practice are also identified.
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