A joint RHR International and NYSE Governance Services study conducted in 2014 addressed a two-part question: what makes a great board and how does a great board add differential value to the organization it governs? One finding of that study was that great boards must continually refresh and renew themselves to sustain a high level of contribution over time. While renewal doesn’t automatically equate to director replacement, shareholders expect boards to contribute sustained value by directing the company to seize opportunities and manage risks. To do so, boards must continually evolve and adapt to the changing environment in which they operate.
