The number of boards and their members that regularly undergo formal evaluations has climbed significantly since 2002, according to a survey by Corporate Board Member and PricewaterhouseCoopers. This year 84% of the respondents say their boards conduct such a process, up from 33% three years ago. Evaluations of individual directors have also increased over the same period, from 19% in 2002 to 37% in 2005.
The 1,103 respondents weighed in on the effectiveness of those evaluations too. In 2005, 67% rate the full-board process either “very effective” or “effective,” versus 43% in 2002. Individual evaluations are rated “very effective” or “effective” by 70% in the 2005 survey, compared with 37% three years previously.
These results—and the fact that 58% of those surveyed got a raise during the year—may help explain why directors seem relatively content with their board service. The big exception: strategic planning. For the second year in a row, a majority of the respondents—59%, compared with 58% in 2004—put this at the top of their list of things they say need additional discussion time. (For more, see the following story.)
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