WASHINGTON, Oct. 22, 2018 (GLOBE NEWSWIRE) -- The National Association of Corporate Directors (NACD), the authority on boardroom practices representing more than 19,000 board members, today announced two new tools to help inform directors as they work to embrace the priority of boardroom diversity.
Investor Perspectives on Board Diversity provides guidance to boards on what an array of institutional investors, pension funds, and proxy advisory firms have stated about the importance of diversity as a governance imperative.
Director Tip Sheet: Discussing Boardroom Diversity with Major Shareholders helps boards consider the topics that could arise during director-investor conversations about board diversity and composition.
“NACD research shows that shareholders and institutional investors are placing greater emphasis on board diversity than ever before,” said NACD president and CEO Peter Gleason. “We urge boards to be intentional about diversity, and these tools are designed to help accelerate progress in this area.”
Announced earlier this year in collaboration with Deloitte, NACD’s NXT initiative is a multiyear initiative to help directors and boards understand how to leverage the power of diversity and inclusion to create long-term value. The new tools announced today are the first in a series of resources designed to inform boards as they tackle the priority of diversity.
Investor Perspectives on Board Diversity
In recent years, public company boards have increasingly faced shareholder pressure to enhance boardroom diversity. Investor Perspectives on Board Diversity is designed to help boards demonstrate via public disclosures and other forms of communication how they are taking a proactive approach to increasing and maintaining diversity. It includes guidance on the following topics:
- Initiating boardroom discussions around boardroom diversity
- Becoming familiar with shareholders’ priorities around board composition
- Identifying potential areas of improvement related to board recruitment and diversity
Director Tip Sheet: Discussing Boardroom Diversity with Major Shareholders
Institutional investors’ recent signals to boards indicate a stronger-than-ever focus on the issue of boardroom diversity. According to NACD research, one-quarter of mid-cap companies and 29 percent of large-cap companies who had a representative from their board meet with institutional investors in the prior 12 months reported that board composition issues like director skill sets and diversity were discussed in that director investor meeting. Director Tip Sheet: Discussing Boardroom Diversity with Major Shareholders, created with input from the investor community, offers guidance to help boards consider the topics that could arise during director-investor conversations about board diversity and composition, including these:
- Who an investor representative might contact to discuss boardroom diversity
- The questions investors may discuss with board leadership and/or management related to boardroom diversity
- Tips from NACD and/or the investor community to keep in mind when considering how your board might answer an investor’s question
- A section where you may write your preparation notes prior to your investor-director discussion
To learn more about these resources or the NACD NXT initiative, please visit www.NACDonline.org.
About NACD
The National Association of Corporate Directors (NACD) empowers more than 19,000 directors to lead with confidence in the boardroom. As the recognized authority on leading boardroom practices, NACD helps boards strengthen investor trust and public confidence by ensuring that today’s directors are well prepared for tomorrow’s challenges. World-class boards join NACD to elevate performance, gain foresight, and instill confidence. Fostering collaboration among directors, investors, and corporate governance stakeholders, NACD has been setting the standard for responsible board leadership for 40 years. To learn more about NACD, visit www.NACDonline.org.
Contact: Susan Oliver
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703-216-4078