10 steps for meeting new governance rules. (Business Briefs).

1. Insure Insure can mean:

To provide for financial or other mitigation if something goes wrong: see insurance or .
Or you may be looking for ensure or inshore.

the independence of the three main committees -- Audit, Compensation and Governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. .

2. Establish clearly written charters for each of the committees.

3. Select someone to be lead director, either for a set period of time or on a rotating ro·tate
v. ro·tat·ed, ro·tat·ing, ro·tates

v.intr.
1. To turn around on an axis or center.

2. basis, who will preside pre·side
intr.v. pre·sid·ed, pre·sid·ing, pre·sides
1. To hold the position of authority; act as chairperson or president.

2. To possess or exercise authority or control.

3. over executive sessions.

4. Make sure there is a clear procedure in place for evaluating the CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. .

5. Establish a regular process for evaluating the board.

6. Use an outside source for recruiting directors, especially a proven financial executive.

7. Develop a strategy that outlines future board composition.

8. Make sure there is a concrete plan in place for succession and that the board is involved in broader succession and management development activities.

9. Make sure compensation for management is directly tied to performance goals.

10. Improve board effectiveness by having a board governance review process, possibly with the help of an independent consultant.

Source: Boardroom Consultants

COPYRIGHT 2003 Financial Executives International
No portion of this article can be reproduced without the express written permission from the copyright holder.

Reader Opinion

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:	corporation management
Publication:	Financial Executive
Article Type:	Brief Article
Geographic Code:	1USA
Date:	Mar 1, 2003
Words:	152
Previous Article:	'To-do' list for board compensation committees. (Business Briefs).
Next Article:	New corporate governance handbook. (Business Briefs).
Topics:	Corporations Management

Related Articles
Toward a New Foreign Policy.
Federal Court Bars Mass. Ballot Question On Parochial School Aid.
Was it something we said? The government's defensive reply to TEI's amicus brief in Mead strikes a nerve.
Online research strategies for the bookish lawyer: lawyers with more legal than technical know-how can still use the many computer tools available to...
IT Governance Institute (ITGI).
When a win may not mean much.
Internal audit.
Internal audit.
General Synod Web site invites comments.