Nomination Committee
Candlefocus EditorThe composition of a nomination committee can vary, but usually includes the chairman of the board of directors, the deputy chairman, and the company's chief executive officer. Directors of the firm, members of the leadership team, or other key members of the organization may also be part of the nomination committee.
The position of the chair of the nomination committee is usually taken by a non-executive director. The selection and responsibilities of the non-executive director are typically outlined in a company's corporate governance document. The non-executive director's role is to discuss any nominated candidates with the rest of the committee, ensuring each one is suitable and has the right skills, qualities, and experience needed to fulfill the role in question.
The nominating committee's duties may also involve deciding to remove or replace a board member, setting the agenda and structure of board meetings, and monitoring the performance of the board and ensuring it is working efficiently.
In an ideal world, a nomination committee should have a selection process in place that evaluate each potential board of director and management candidate carefully, assessing their ability and knowledge in the relevant area, their interests in the firm, and their relationship to other stakeholders. Certain checks will also be carried out, such as a background check to obtain information about the candidate. The members of the nomination committee will also want to ensure the candidates understand their responsibilities as a board or executive member and that they are likely to fulfill them.
The goal of a nominating committee is to create a healthy balance of independent and executive directors on the board. The members of this committee have a unique responsibility because they have a part to play in helping to shape the board and corporate management of an organization. A committee must carefully consider each potential board or management member from all angles, in order to make sure the best people are chosen for the job.