Area served Nationwide Founded 19 December 1977 | Website www.nacdonline.org | |
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Focus Director Education, Board Development, Director Recruitment Services, Credentialing Location 2001 Pennsylvania Avenue NW, Suite 500,Washington, D.C., U.S. Method Public, Private and Nonprofit Company Surveys, Educational Events, Conferences, Publications Headquarters Washington, D.C., United States Type of business National Director Membership Organization Similar National Association of Conser, Center for Audit Quality, Society of Corporate Secretari, The Conference Board, Public Company Accountin Profiles | ||
The National Association of Corporate Directors (NACD) is an independent, not-for-profit, section 501(c)(3) founded in 1977 and headquartered in Washington, D.C.. In 2015, NACD reported having more than 17,000 directors from public, private and non-profit-organizations from both the U.S. and overseas. According to their mission statement, NACD is dedicated to advancing boardroom leadership. The organization is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors.
Contents
- History
- Mission
- Advocacy
- Programs
- Credentialing Classes
- Role in the Corporate Governance Movement
- NACD and the Securities and Exchange Commission
- References
NACD operates at both a national and local level with chapters in many major locations, such as New York City, Houston, Southern California, Seattle and Florida, where they provide educational programs and networking opportunities.
The organization collaborates with various other organizations such as NASDAQ and Pearl Meyer & Partners.
History
NACD was founded in 1977 with the goal to educate directors. In 1978 it announced the first comprehensive Director Education Program. Ten years later, NACD recognized the first Director of the Year. In 1993, NACD published its first Blue Ribbon Commission Report, offering ten principles to guide audit committees and their oversight of the financial reporting process, as well as risk management and internal and external auditors. In the early 2000s, NACD’s Blue Ribbon Commission Report on Board Evaluations helped optimize board composition, while the organization helped shape Sarbanes-Oxley and influence the new New York Stock Exchange (NYSE) & NASDAQ listing rules. In 2004, NACD co-found the Global Director Development Circle, launched in response to the need to keep directors ahead of international corporate governance and legislation. This program led NACD to globalize the Certificate of Director Education program in 2006. The program has since evolved into the Global Network of Director Institutes. In 2010, NACD acquired Directorship magazine, a magazine dedicated for today’s corporate officers and board of directors.
Mission
NACD’s mission, as stated on their website, is to advance exemplary board leadership – for directors, by directors by providing the information and insights that board members need to confidently navigate business challenges and enhance shareowner value.
Advocacy
NACD serves as a resource during the legislative process by regularly sending research, publications and comment letters to the United States Congress, the United States Security and Exchange Commission and the Public Company Accounting Oversight Board. NACD employees have testified and conferred with key committees as they prepare for Congressional hearings. Research provided by NACD is cited in the legislative and regulatory arenas, providing statistics regarding boards as well as leading practices addressing key issues, such as boardroom compensation.
Programs
NACD's programs consists of different director learning and networking opportunities that provide members with resources and reports, as well as encourages members to partake in various professional education classes, peer exchanges and webinars.
Credentialing (Classes)
NACD Fellowship Programs: Board members can earn credentials to be considered an NACD Board Leadership Fellow or NACD Governance Fellow by attending NACD Master Class, NACD Director Professionalism courses, Conferences and Forums.
Battlefield to Boardroom: a board development program that prepares and transitions military flag officers and general officers from military service to boardroom service and creates employment opportunities for veterans. The Battlefield to Boardroom courses are designed to teach attendees how to serve in the boardroom and provide the opportunity for retired officers currently serving on boards to mentor a new generation of ex-military directors.
Global Board Leaders' Summit: NACD's annual conference convenes directors, governance leaders and industry experts to help boards identify both opportunities and challenges that could impact a company's strategy and vision.
NACD Directorship 100: This annual award recognizes leading corporate directors and governance experts who significantly impact boardroom practices and performance.
Role in the Corporate Governance Movement
In 2001 and 2002, the unexpected bankruptcies of Enron and WorldCom brought increased public and government attention to corporate governance and the role of the board of directors. In February 2002, Roger Raber, former CEO of NACD, was called to testify before House Energy and Commerce Committee, chaired by Billy Tauzin (R-LA), regarding the failure of Enron Corporation. At request of Committee, Raber submitted 10 suggested standards, based on the Report of the NACD Blue Ribbon Commission on Director Professionalism (1996/2001/2005), for public company governance, submitting same to the New York Stock Exchange (NYSE) and the NASDAQ on May 1, 2002. In November 2003, the Securities and Exchange Commission approved new listing requirements for both, which were influenced by NACD’s recommendations.
The ten core recommendations are as follows: