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Who wants to be a competent director? An evaluation tool of directors’ knowledge of governance principles and legal duties

Who wants to be a competent director? An evaluation tool of directors’ knowledge of governance... Awareness of the need for board and director performance evaluation is growing, but implementation has been both partial and slow. It is unusual for boards to undertake evaluations of their own performance, and more so to evaluate individual directors. Directors often feel that individual director evaluation has several drawbacks including undermining collegiality in the boardroom. There is thus a perceived attractiveness of director self‐assessments rather than peer review or outsider assessments. Self‐assessment, even though subject to a higher degree of biases than a combination of self‐assessment and peer assessment, is less likely to give rise to defensive routines and can provide a psychologically safe environment for a director to evaluate their own knowledge. Bearing in mind the above, we developed a 20‐question self‐assessment tool, which aims to assist directors in evaluating their understanding of important governance concepts and principles, as well as their legal duties as directors. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Corporate Governance Emerald Publishing

Who wants to be a competent director? An evaluation tool of directors’ knowledge of governance principles and legal duties

Loizos Heracleous; Lan Luh Luh
Corporate Governance , Volume 2 (4): 7 – Dec 1, 2002
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References (18)

Publisher
Emerald Publishing
Copyright
Copyright © 2002 MCB UP Ltd. All rights reserved.
ISSN
1472-0701
DOI
10.1108/14720700210447650
Publisher site
See Article on Publisher Site

Abstract

Awareness of the need for board and director performance evaluation is growing, but implementation has been both partial and slow. It is unusual for boards to undertake evaluations of their own performance, and more so to evaluate individual directors. Directors often feel that individual director evaluation has several drawbacks including undermining collegiality in the boardroom. There is thus a perceived attractiveness of director self‐assessments rather than peer review or outsider assessments. Self‐assessment, even though subject to a higher degree of biases than a combination of self‐assessment and peer assessment, is less likely to give rise to defensive routines and can provide a psychologically safe environment for a director to evaluate their own knowledge. Bearing in mind the above, we developed a 20‐question self‐assessment tool, which aims to assist directors in evaluating their understanding of important governance concepts and principles, as well as their legal duties as directors.

Journal

Corporate Governance – Emerald Publishing

Published: Dec 1, 2002

Keywords: Boards of directors; Corporate governance; Competences; Evaluation

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