What is a board evaluation?

A board evaluation is a structured review of how well a board is performing. It looks at how the board of directors work together and how effectively they carry out their responsibilities.

Board evaluations gather input through surveys, interviews, meeting observations, and reviews of documents like board papers, meeting minutes, and agendas. Boards can run their own assessments or bring in an external reviewer.

The result is usually a report highlighting strengths, areas for improvement, and specific recommendations. Ultimately, a board evaluation will give a board the information it needs to improve its performance while also ensuring good governance and compliance.

Regulatory requirements and best practices

Board evaluations are often required by law, stock exchange rules, or corporate governance regulations.

In the UK, France, and Sweden, public companies must evaluate their boards annually and provide an annual report, disclosing certain details of the evaluation process. Some companies in the UK and France are also expected to bring in an external evaluator every three years.

In the US, the NYSE requires the boards of listed companies to carry out an annual board reviews, but it doesn’t mandate a specific process or require detailed disclosure. Companies need only to disclose that the review took place. NASDAQ-listed companies aren’t required to conduct assessments, but many choose to in order to demonstrate strong governance.

Best practice in most regions includes reviewing the board, its committees, the chair, and individual directors on a regular basis. Evaluations should be objective and cover factors like board composition, diversity, how directors work with management, and how decisions are made.

Types of board evaluation

Board evaluations can be done in different ways:

• Self-assessments: Directors review their own performance using surveys or guided discussions, often facilitated by digital tools.
• Peer reviews: Directors give confidential feedback on one another.
• Chair evaluations: Focused reviews of how effectively the chair leads the board.
• Committee evaluations: Assessments of how well specific board committees function.
• External evaluations: Independent experts conduct a formal review of board performance.
• 360-degree reviews: Input is gathered from executives and other stakeholders alongside board members.
  
  Using a mix of these approaches often leads to a more complete picture of board performance and impactful recommendations for long-term progress.

The role of data in board evaluations

Using data helps boards assess performance objectively. It allows boards to move beyond subjective opinions and measure their effectiveness in a more scientifically.

Data also helps you spot trends and benchmark against other organizations, giving context to how your board is doing relative to its peers and can help guide improvements.

When evaluation findings are backed by solid, specific and evidence-based data, it’s easier for stakeholders to trust them—and more likely the board will act on them. It also reinforces transparency and accountability.

The role of confidentiality and trust in board reviews

Confidentiality and trust are critical in board evaluations. They create space for honest, open and constructive feedback.

When board members feel safe, they’re more likely to share useful insights. These insights form the foundation for high-quality recommendations and real change.