A nomination committee is formed in order to ensure that the composition of the board is balanced. It monitors the process for appointment of directors to the board of directors as well as making recommendations for appointments to the board.
Typically, when recommending appointments, the nominations committee needs to consider the overall size of the board, as well as other factors, such as:
– The various skills needed to be present on the board
– The mix of executive and non-executive directors
– The need for continuity in the board
– The need to attract directors from diverse backgrounds to improve the organisation’s strategy.
Responsibilities:
– Review regularly the structure, size and composition of the board
– Consider the balance between executives and NEDs on the BOD.
– Ensure appropriate management of diversity to board composition.
– Provide an appropriate balance of power to reduce domination in executive selection by the CEO/chairman.
– Regularly evaluate the balance of skills, knowledge and experience of the board.
– Give full consideration to succession planning for directors.
– Prepare a description of the role and capabilities required for any particular board appointment including that of the chairman.