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ARTICLE · 09 NOVEMBER 2016

Lessons From Board Surveys

Many of the leading director surveys reflect data gleaned from public company directors, whose experiences can be substantially different from those of nonprofit directors.

United StatesCorporate/Commercial Law

Three new governance surveys prepared by outside consultants and released in October offer particular lessons to boards of sophisticated nonprofit health systems on a broad variety of commitment, service, performance and other relevant governance topics.

For example, a new survey by the national accounting firm BDO USA indicates that a substantial number of director/respondents supported specific, stringent limits (e.g., less than five) on the total number of outside company boards on which a director may serve. In addition, a separate survey published with a group associated with Spencer Stuart reported a substantial gap between the oversight expectations placed on corporate governance, and the actual ability of a board to exercise oversight over the organization. Other relevant results from the Spencer Stuart survey included an acknowledgment of the increasing preparation requirements being placed on board members, and the value of recruiting director candidates

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