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Evaluations Add Value for Private-Company Boards

Board Perspective Series

At the September 2015 NACD Global Board Leaders’ Summit, one of many discussions at the private-company board forum focused on board refreshment. Why do it? What are the motivators? How should boards go about it?

Over 100 private company directors talked openly about the need for refreshing the board to bring in diversity of thought and opinion, and introduce new skill sets to the board. However, the actual practice of private company board evaluations is comparatively lacking. According to recent NACD governance surveys, only 62 percent of private company directors said that they conduct a full board evaluation compared to 87 percent of public companies.

While private companies can conduct evaluations at their prerogative or as deemed in charters, by-laws, or shareholder agreements, those attending the Summit highlighted several reasons why evaluations are critical to enhancing oversight and improving board effectiveness.

Evaluation add value for private company boards


Read the full article to learn how evaluations add value for private company boards and why they are critical to a company’s overall business success.   

For more information, contact KPMG’s Private Markets Group:

Brian Hughes
National Private Markets Group Leader
T: 267-256-1820
E: bfhughes@kpmg.com

Sal Melilli
National Audit Industry Leader
Private Markets Group
T: 212-872-6030
E: smelilli@kpmg.com

About KPMG’s Private Markets Group
You know KPMG, but you might not know KPMG’s Private Markets Group (PMG). We’re dedicated to working with businesses like yours. Whether you’re an entrepreneur, family business, or a fast-growing company, we understand what is important to you. By providing industry perspectives and proactive guidance, our PMG professionals help private companies achieve their strategic objectives throughout each stage of the business life cycle. Through our global network of professionals, we offer integrated audit, tax and advisory services to meet the needs of growing private companies.