Practical recommendations
In recent years the length of board packs has increased significantly. In our report we investigate what information board members currently receive and how board packs are prepared. We have come to the conclusion that boards need to build on both individual and collective responsibility and stay diverse and inclusive, making sure that decision-making is a true team effort. We have come up with two detailed lists of proposed actions that need to be considered in the context of the three overarching principles.
How did we gather evidence?
ICAEW interviewed non-executive directors, company secretaries and executive management responsible for preparing board and committee packs, as well as companies providing services to boards for the electronic management of board information. A desktop review of existing research gave further context to our interviews. This report focuses on the preparation, provision and use of board and board committee packs within the financial services industry. However, boards in other, especially highly regulated, industries can learn from the experience of banks, insurers and investment managers.
Moving forward
It has become clear that change is needed. This report investigates the current state of board pack information and preparation. It also highlights the intellectual and practical challenges of information overload, as well as explores solutions. Our proposals will aid the provision of effective board packs for all those involved.
Proposals for board chairs and non-executives
- A contents page will give the pack a coherent order and provide better context for non-executives.
- A time plan should be included with the contents page.
- Proportionality is important.
- Minutes should reflect their purpose of capturing the wisdom of the board, without superfluous detail.
- Educational papers should be provided separately.
- Escalation needs to be carefully considered.
- Expectations should be clearly set out to place responsibility on specific people for the required papers.
- Feedback should be encouraged by the chair.
- Deadlines are of critical importance.
- Pre-meetings are helpful for NEDs as they allow discussion of the issues without the presence of executives.
Proposals for executives and management
- Papers should have a clear purpose.
- Greater focus is needed.
- Perspectives and priorities of the board must be understood by preparers.
- Emphasise future events, exposures and high risk areas like IT and cyber risk.
- Quality of writing is important.
- Rules and deadlines are helpful.
- Templates increase efficiency.
- Exception reporting is sufficient for routine matters.
- Electronic packages are a good way of using digitalisation.
- NEDs should be provided with briefing papers.
- Presentations promote discussion.
- Executive committee meetings can act as an efficient filter.
- Presentation of the board packs can make a huge difference.
Further support
Audit insight: investment management
In this Audit insights report, external auditors and ICAEW specialist staff explore whether the investment management industry is fit for purpose and use their expert knowledge to identify what changes need to be made.
Read moreCulture and purpose in financial services
In this publication, the Financial Services Faculty recommends actions that the industry, boards and ICAEW Chartered Accountants should be taking Following the 2008 global financial crisis.
Read moreSenior Managers and Certification Regime
The Senior Managers and Certification Regime (“SMCR”) is a new regulatory framework which aims to improve individual accountability. First introduced in March 2016 for banks, building societies and large investment firms, the regime has been extended to solo firms.
Read more
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