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Commissioned by the Quoted Companies Alliance (QCA) and Downing LLP and completed by Henley Business School, the Board Performance Review report provides insight into the effectiveness of board performance reviews and highlights the difference between smaller and larger companies.
Board performance reviews are an important element of corporate governance. It is therefore important to better understand how small and mid-sized quoted companies undertake these reviews, how they differ between companies of different sizes and stages of development, and what can be learnt to develop good practice for the mid-cap ecosystem.
The research analyses the approach of different companies and uses a framework of proactive and reactive boards whilst looking at the variances between companies of different sizes. It reveals a variety of formal and informal approaches which affect the effectiveness of the review process. It captures 30 interviews with companies and investors and 100 survey responses from companies, presenting detail into topics such as frequency, accountability, engagement and disclosure.
This report has also been used to inform the QCA Guide to Board Performance Reviews, which outlines 6 key applications for an effective review process and is available to QCA members for guidance and practicality.
“Coupled with strong enthusiasm, boards that take on a proactive approach to their performance reviews are more likely to see a strong, positive response from investors. We hope this report, with the accompanying guide, captures the essence of success for board performance and enables companies to approach reviews effectively.”
Tim Ward, Chief Executive, The Quoted Companies Alliance.
“This report provides a valuable snapshot as to how growth companies differ from larger companies in this area. Companies will benefit from reviewing where they sit on the spectrum and assessing if there are improved practices they can learn from other companies at a similar stage of development to them. “
Judith MacKenzie, Partner, Downing LLP.
“Board performance assessment is simply a matter of good business practice and good sense. Directors do not arrive on the board as a ‘finished article’; on the contrary, theirs is a difficult job requiring reflection, development and continuous improvement.”
University of Reading Research Team, Henley Business School.
The QCA Board Performance Review Report can be downloaded here.
