Creating a Corporate Governance Institute
Roger W. RaberPresident & CEONational Association of Corporate Directors (NACD)Washington, DC
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About NACD
10,000 members and customers throughout the world
Non-profit, non-lobbying organization Association of directors by directors Mission is to improve leadership in for-
profit companies Services are publications, education
programs (public and in-company), best practices research, local peer group meetings, and individual guidance
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Structure of an Institute
Management – staff resources to build an Institute;
Research & Development – staff with “content-rich” background in corporate governance;
Meetings & Education – staff with background in administering conferences, meetings, and education programs; and
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Structure of an Institute…
Customer Service / Database Management – staff who are customer-friendly and have computer background;
Marketing – staff with sales and marketing background with emphasis on electronic / Web site promotions and sales.
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Services of an Institute
Publications: Manuals, guidelines, information on boards from start-up companies, family-held businesses to largest corporations – from building a board, to audit committee quality, to getting behind the numbers.
Education – Peer Interaction: local, regional, and in-boardroom seminars of small groups focused on sharing best practices, identifying critical and emerging issues, and developing competencies for new and continuing directors.
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Services of an Institute…
Guidance: Provide information and advice to members on any and all issues in governance – from general governance principles, to committee structure, to fiduciary responsibilities – members need access to information quickly and efficiently – e-mail, fax, conversation.
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Funding of an Institute
Membership Dues – 30-40% of revenue – provide newsletters, discounts on publications and meetings, and peer guidance
Publications – 25-30% of revenue – manuals, guidebooks
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Funding of an Institute…
Education Programs – 25-30% of revenue – local / regional programs, and in-company boardroom sessions
Corporate Sponsorship – 20-25% of revenue from high profile, very reputable board advisers – KPMG, McKinsey, AON, Heidrick & Struggles
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Developing a Strategy for an Institute
Form Affiliations and Alliances with organizations in need of board leadership and director excellence – World Bank, CEO-based industry associations – America’s Community Bankers, Council of Growing Companies, Executive Leadership Council.
Major focus on “board leadership and excellence” not necessarily on legislative / regulatory / shareholder lobbying interests.
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Developing a Strategy for an Institute…
Build a board, advisory committee, faculty, and writers / editors who are well known, preeminent, and respected in the corporate community.
Integrity, Trust, Independence, Credibility, and High Standards are hallmarks of an Institute on Corporate Governance.