Board Evaluation

Pakistan Institute of Corporate Governance (PICG) has been supporting company boards over the past three years through its Board Evaluation product that enables board of directors to improve their effectiveness.

Effective boards make sound collective decisions to meet the company’s strategic objectives and provide oversight and support on key matters to management for optimal operational performance. A well-conducted evaluation helps the board and its committees to perform to their maximum capabilities, crucial for the continuing success and growth in the long term sustainable value of the company.

Corporate governance best practices and codes are increasingly emphasizing the need for Boards to evaluate their effectiveness and recommend periodic externally facilitated board evaluations. In Pakistan, the Code of Corporate Governance 2012, carries a new clause V (e) which requires that:

“within two years of coming into force of this Code , a mechanism is put in place for an annual evaluation of the board’s own performance.”

PICG, in collaboration with The Corporate L.I.F.E. Centre International Inc. (CLCI), has now developed an online solution for such board evaluations. Organizations may either opt for self-assessment or assessments facilitated by PICG. Further details of this next generation Board Evaluation product can be viewed by clicking on the link under ‘Further Information’ below.

Typically, on hearing from a company, we would obtain directors names and email addresses to allow us to generate their usernames and passwords and provide direct secure access to PICG/CLCI’s web-based evaluation product. The entire process from first engagement to the report being received is no more than 30 days.

Further Information:

Contact:

Arjumand Shah (Ext. 18)

Online Assessment
Our board governance best practices assessment quantifies board effectiveness and alignment among its members, identifying critical gaps in areas of their fiduciary responsibilities. This online assessment enables boards to spend less time gathering data and more time paying attention to high impact, low performance areas and developing solutions, that support management to achieve the desired strategic objectives.

Specific Areas Covered
 Board Composition
 Board Committees
 Board & CEO Compensation
 Board Planning
 Board Procedures
 Board Interaction
 Board Information
 Board & CEO Effectiveness

Reports
The final report contains a series of comprehensive charts for degree of impact and performance comparisons, as well as tabulated assessment scores with a breakdown for executive and non-executive directors. The report also assigns boards a Strategic Performance Index used as a baseline for future assessments and includes an overall report card.

Developmental Objectives
The final report can be used to:
 identify and improve performance issues
 prioritize performance improvement goals
 determine steps to positively impact board effectiveness
 create a board effectiveness improvement plan
 execute and follow up on improvement plan
PICG offers advisory services to facilitate boards in the assessments and in meeting their developmental objectives through in-depth interviews and detailed analysis of the final report.

Capture
Capsture
Captussssre

Self Assessment
(Board Members Only)
 The board is assessed as a single body
 Evaluation process undertaken by the company itself
Deliverable
Report and basic analysis
Investment
Rs. 200,000
PICG Facilitated Assessment
(Board Members Only)
 The board is assessed as a single body
 Evaluation process validated through interviews conducted by PICG
 Detailed analysis and report provided by PICG
Deliverable
Report and detailed analysis
Investment*
Members: Rs. 200,000 + Rs. 20,000 per hour (minimum of 3 hours) for interview
Non-Members: Rs. 200,000 + Rs. 25,000 per hour (minimum of 3 hours) for interview
PICG Facilitated 360 degree Assessment
(Board Members / Senior Management)
 The board is assessed as a single body
 Evaluation process validated through interviews conducted by PICG (note)
 360o feedback obtained during interviews
 Detailed analysis and report provided by PICG
Deliverable
Report and detailed analysis
Investment*
Members: Rs. 200,000 + Rs. 20,000 per hour (minimum of 3 hours) for interview
Non-Members: Rs. 200,000 + Rs. 25,000 per hour (minimum of 3 hours) for interview
Note: Valid for up to 25 individuals