The Priorities and Performance of Boards in UK Public Companies

This study investigated the tasks and performance of the boards of UK listed companies. Questionnaires were sent to Chairmen of these companies and 134 responses were received from a reasonable cross‐section. First, chairmen were invited to rate the importance of each of sixteen key tasks to their own board, and second, to estimate how much effort their board currently devotes to each. They were then asked to rate their board’s current performance and potential for improvement against the tests of good practice appropriate to each relevant task. The results provide evidence that boards are under pressure to fulfil ever‐rising stakeholder and regulator expectations and to do more to promote the future prosperity of their companies. In addition, the study provides evidence that boards possessing a majority of executive directors consider that there is conspicuously greater potential for improvement in performance than those where non‐executives are in the majority. Finally, the definitions of board responsibilities and tests of good practice used in the study have been shown to provide a comprehensive and robust template with which boards can assess their effectiveness.