The board of directors is the cornerstone of the U.S. model of corporate governance. An effective board ensures that management runs a company in the long-term interests of shareholders, whom the board is elected to represent.
Over time, a board may become complacent or may need new skills and perspectives to respond nimbly to changes in the business environment or strategy. Regular and rigorous self-evaluations help a board to assess its performance and identify and address potential gaps in the boardroom.