News

The Board Institute’s Board Evaluations Receive Director Education Accreditation by RiskMetrics/ISS

Phoenix, Arizona (September 10, 2008) - The Board Institute ("TBI"), leading provider of comprehensive, independent, web-based tools for conducting Board of Director, committee and director evaluations, announced  that RiskMetrics/Institutional Shareholder Services, the standard in financial risk management, has accredited TBI’s evaluation tools as satisfying director corporate governance education requirements. 

Thus, for the first time, corporate directors are able to fulfill board assessment and educational mandates through a single, effective, on-line solution.   

RiskMetrics rates companies to shareholders according to some 70 criteria, including two relating to assessment, the conduct of annual board evaluations and individual director evaluations.  The New York Stock Exchange requires its issuers to conduct an annual board assessment and provide continuing director education. The Security Exchange Commission mandates annual evaluations, and insurers reward companies conducting board evaluations and director education with enhanced insurance policies.   To date, accredited director education has been offered only through classroom and in-person training. 

“This accreditation is an important milestone in corporate governance,” said Susan Shultz, President, The Board Institute.   “For the first time, directors can satisfy market requirements for annual evaluation and also education, in a timely, highly effective and convenient way.  Directors are embracing more professional evaluation solutions, and this convergence of evaluation tools and education provides a powerful way to improve board productivity.”

According to a recent study by PriceWaterhouseCoopers, 79% of directors believe that an effective board evaluation process is the most important technique for assuring peak performance by directors.  Over 88% of boards now conduct annual evaluations, up from only 33% in 2002.  

The Board Institute offers a complete suite of independent evaluation tools that includes The Board Index, The Audit Committee Index, The Compensation Committee Index, The Governance Committee Index and The Director Index.  Working together, TBI evaluation tools enable a Board of Directors to comprehensively evaluate the performance of the Board, the three most critical committees, and all individual directors.  
 
Demand for director education has grown dramatically, as wave after wave of regulatory changes have driven increased transparency and accountability in the boardroom. Yet, while 90% of directors believe that directors should participate in some form of director education, only 40% of publicly traded companies have budgeted for board education.
 
The Board Institute’s Indexes include targeted information on best practices, exchange mandates and regulatory requirements, which are continuously updated by a broad range of governance and research experts.  The Indexes also provide response ranges, variances, anonymous comments and feedback on approximately 70 areas in each Index. 

“By incorporating education into evaluation tools, The Board Institute provides uniquely valuable tools that are helping directors and officers enhance their productivity and improve their boards in a way never before possible,” adds Shultz.
 
About The Board Institute: The Board Institute (TBI) provides Boards of Directors with world-class evaluation tools to assess performance, benchmark best practices and educate their directors on corporate governance. Ultimately this leads to higher company performance and reduced risk. TBI’s suite of indexes is designed to inform and educate Directors, and shine light on key Board performance indicators. TBI has applied a scientific construct to the manner in which evaluation questions are asked, enabling unbiased, truer, and more accurate information to be extracted. For more information please visit, www.theboardinstitute.com.

About RiskMetrics Group: RiskMetrics Group (NYSE: RMG) is a leading provider of risk management and corporate governance products and services to financial market participants. By bringing transparency, expertise and access to the financial markets, RiskMetrics Group helps investors better understand and manage the risks inherent in their financial portfolios. Our solutions address a broad spectrum of risk across our clients’ financial assets. Headquartered in New York with 19 global offices, RiskMetrics Group serves some of the most prestigious institutions and corporations worldwide.

For more information, please visit: www.riskmetrics.com.