Accountability is one of the prerequisites of good corporate governance. When directors have a solid sense of accountability, they become more careful about their actions knowing that they will be held responsible for the consequences.
How can you instill accountability in your directors? Different people require different approaches, but as a general rule, these methods work:
Evaluation
In most companies, employees get evaluated based on their performance at the end of the year. Directors will benefit from a similar arrangement. By checking on their performance on the corporate board, you’ll be able to identify directors who are efficient and productive, and those who are not.
Re-Election
Just like an annual evaluation, an annual re-election process will keep directors from becoming too complacent in their roles. Knowing that they may lose their position due to bad performance at the end of the year, they’ll work hard to retain their slot on the corporate board.
Incentives
The proper incentives motivate directors to do their jobs right. Some directors are paid in stocks, so they will have a personal reason for wanting the company to do well. And because they are in the position to make that happen, they will make it happen all the more when they have a financial stake in it.
Do you know other ways to increase directors’ sense of accountability? Share them with us in the comments.
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Another way to increase accountability among directors is by implementing a board portal solution that also doubles as a corporate governance software, just like Convene.
Convene is a multi-platform system that runs on iPads and Android tablets makes the whole board meeting process transparent, so everyone from directors to third-party auditors will know who is responsible for each development. Even little changes in meeting documents are tracked and recorded, so no action is untraceable.
Features of Convene that can ensure accountability among board directors would be the audit trail feature and in-system analytics that provides an overview of activity within the board portal system. Using this system will enable board directors to become more accountable and pushed to be more productive when it comes to their task, responsibilities, and practice of good governance.
Farah is a corporate governance analyst and business development manager of Convene’s MENA team. Owing to her experiences working in a boardroom, she is an expert in leadership roles and corporate governance best practices. Farah has been recognized by Convene for her extra commitment in imparting knowledge about effective management.
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