Report on Board Evaluation Practices by Top 100 Companies

Study highlights nascent state of Board Evaluation practices in India; Only 5 companies get 3-star rating on a 5-star rating scale

Board Evaluation Practices in India: A Study of Top 100 Companies in 2015 is an in-depth analysis of the Board Evaluation practices in India contrasted with global best practices to identify areas for improvement. We have developed a proprietary 5-Star Rating System for Board Evaluation and applied it to the top 100 companies India.

Highlights of the Top 100 Companies evaluation using our proprietary 5-star rating system are:

  • 5 companies got 3-Star rating, the highest rating given to the select group of companies. These companies disclosed positive results of their evaluation in addition to the evaluation criteria and evaluation process
  • 52 companies got 2-Star rating, as they reported both the evaluation criteria and the evaluation process
  • 26 companies got 1-Star rating, as they reported either the evaluation criteria or the evaluation process
  • 3 companies did not do Board Evaluation despite the mandate
  • 17 companies were exempt from Board Evaluation being public sector companies.Despite exemption, 3 of them shared their evaluation process, criteria or outcome.

9 of the top 100 companies availed the services of an external consultant for their Board Evaluation process, a basic requirement considering the nascent stage of Board Evaluation Practice in India.

The full report can be downloaded at: Board Evaluation Practices in India-26-05-2016

A supplementary note, ‘Extracts of Board Evaluation from the Directors’ Report of the top 100 Companies’ can be downloaded at: Board evaluation annexure