The nomination committee – coming out of the shadows - May 2016

19 January, 2021

The nomination committee – coming out of the shadows – May 2016

The impetus for this project, a collaboration between EY and ICSA: The Governance Institute, came from a shared view that the nomination committee plays a crucial role in the effective functioning of boards and yet has so far not been afforded the same amount of analysis and guidance as the other committees. Indeed ICSA has referred to it as the Cinderella committee. Similarly, in 2014 EY described the need for the committee to come out of the shadows. A highly effective board is essential if companies are to produce sustainable returns for their shareholders, stakeholders and wider society. This report is a natural follow-on to EY’s April 2015 report on board effectiveness produced with The Investment Association. That report touched upon some of the same themes, such as succession planning and diversity, and found that there was more work to be done. The Financial Reporting Council (FRC), investors and others are now also focusing their attention on this area, with the FRC having consulted on succession planning in October 20154. We have discussed this report with the FRC and hope that its insights will help, as it considers its next steps.

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