How Boards Can Self Evaluate.

• Position: BOARDBOOK

Although the New York Stock Exchange requires every listed company board to "conduct a self-evaluation at least annually to determine whether it and its committees are functioning effectively," the NYSE provides no guidance as to what such an evaluation should encompass.

Evaluations are commonly conducted by the company's own general counsel or, at best, outside legal counsel. They tend to focus on the board's constitution, processes, and compliance with corporate governance best practices. An evaluation conducted on this limited basis is likely to overlook...