Board Effectiveness Assessment

Overview

The evaluation and analysis of board effectiveness is recognized as a key process for strengthening corporate governance, as stipulated in the Corporate Governance Code. Each year, boards are required to analyze and assess their overall effectiveness, taking into account individual directors’ self-evaluations, and disclose the results. First Compass provides third-party evaluations based on global expertise to support the improvement of overall board performance. We conduct assessments through surveys and interviews and develop actionable plans that strategically contribute to the company, enhancing board engagement and effectiveness.

Support Services

１.Evaluation of Overall Board Effectiveness

At First Compass, we conduct surveys and interviews with each director to analyze the overall effectiveness of the board from multiple perspectives, identifying challenges and areas for improvement. We assess the board’s performance and its influence on management, redefining and proposing how the board can contribute to the execution of corporate strategy.

• Identification of Issues and Challenges: We analyze the board’s practices to identify key issues, focusing on decision-making transparency and director communication.
• Redefinition of the Board’s Role: We provide concrete recommendations to address issues and enhance the board’s effectiveness, promoting actionable improvements that directly strengthen overall board performance.

２.Board activation support

We provide evaluation results with actionable recommendations to improve board operations. Our support helps develop practical plans that enhance board effectiveness and strategic contribution.

• Recommendations for improving effectiveness: We propose concrete action plans to improve board operations, offering effective measures to enhance meeting management, decision quality, and collaboration among directors.
• Action follow-up: Based on recommendations, we follow up on actions the board should take to improve effectiveness, monitoring and adjusting progress as needed.

In conclusion

Evaluating the effectiveness of the board of directors is an essential process to strengthen corporate governance and enhance management soundness. Our company offers third-party assessments with a global perspective to help boards function properly and effectively. Companies interested in improving corporate governance are encouraged to contact us.

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