Question

What is the purpose of forming the nomination committee ?​

Answer 1

Answer:

i don't know sorry..........

Answer 2

Explanation:

In light of increasing corporate responsibilities, corporations and nonprofits are starting to see that they need to revisit many of the traditional responsibilities they’ve had in the past. With so much change evolving in the corporate arena, this is a prime time for companies and organizations to evaluate regulations at every level, assess customer and workforce demographics, and evaluate business models.

Nomination and governance committees have a leadership role related to board effectiveness and governance. Their duties extend to board succession planning, including recruiting and recommending board directors. Nomination committees are the board’s voice on governance, and they get to make the decisions about how they want to shape their company’s governance policies and practices.

Corporations also have the flexibility to make decisions about which people or groups within the company manage governance matters. In addition to the nomination committee, companies may delegate governance responsibilities to the board, board chair, lead director, executive director or another committee.

Companies are finding much value in implementing board management software to assist them in improving their governance practices.

By and large, one of the many basic duties of nomination committees is to periodically review the organization’s charter, bylaws, and policies on ethics and compliance matters.

For public companies, nomination committees also generally accept responsibility for shareholder proposals and engagement. According to Ernst & Young Global Limited (EY), about 48% of public companies report that their nomination and governance committees oversee the shareholder and stakeholder areas, including political spending and environmental sustainability. EY surveys show that about 19% of companies feel that they need to be more conscious of shareholder requests for boards to focus on long-term strategies and outcomes.

Risk management is another area that many companies delegate to their nomination and governance committees. EY notes that about 15% of companies give responsibility for risk management, including governance and non-financial risks, to their nomination committees. Their duties may include reviewing the company’s enterprise risk management process, plans for business continuity, and strategies for workplace and product safety.

The bulk of nomination committee responsibilities fall under board effectiveness, including succession planning, director recruiting and appointments, director education and director self-evaluations.

Data research by EY indicate that about 98% of nomination committees lead or facilitate board evaluations on an annual basis. About 70% of nomination committees also oversee committee evaluations, while about 35% also oversee individual board director self-evaluations. The process of director evaluations usually also encompasses evaluating how governance standards compare to the competition’s standards and the standards of the broader market. In connection with board evaluations, nomination committees also make recommendations for committee assignments and the committee chair. In addition, nomination committees may make recommendations for changes to committee structures and functions.