Overview and Responsibilities of Nomination Committee
Many corporate governance codes in the world have highlighted the importance of having a nominating committee within boards. Following is an overview of the Nomination Committee with their responsibilities in the board.
Overview of Nomination Committee
A nomination committee refers to a group of board members who are accountable for the corporate governance of a company.
The nomination committee has a key role related to board succession planning, including advising and selecting the board of directors. Also, the nomination committee is responsible for annual board evaluations, link corporate strategy to board recruitment, and planning the training for the new directors.
Responsibilities of Nomination Committee
1. Conduct New Board Member Appointments and Succession Planning
The key role or responsibility of the nomination committee is to plan the board member recruitment by linking to the corporate strategy. The nomination committee usually develops a process for deciding the criteria for new director recruitments. Responsibilities of nomination committees fall under succession planning, director recruiting, and appointments.
The nomination committee also responsible for the mix of skills, and expertise of the board, and also considers factors such as gender, diversity, ethnicity of the board members.
2. Conduct Annual Evaluation of the Board
Another responsibility of the nomination committee is to conduct the annual evaluation of the board’s ability in achieving the company’s goals. Individual director’s alignment with the overall company strategy is also considered to make decisions on the future leadership of the company.
3. Link the Company Strategy to Board Recruitment
The nomination committee is responsible for developing clarity over the company’s long-term corporate strategy and make board recruitment decisions based on the future needs of the company.
4. Plan the Training and Continuous Education of New Directors
Nomination committee members are responsible for informing the new directors about the company’s strategy, goals, culture, and management after onboarding. The nomination committee plans the training to ensure that the board members adapt to their roles successfully.
- General Best Practices of Corporate Governance