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In a recent survey of nominating/governance (nom/gov) committee chairs, 77% said board composition and succession planning were their top priorities. Yet, board evaluations, director onboarding and environmental, social and governance (ESG) oversight also ranked among their top five focus areas. This suggests that the scope of a nom/gov committee can easily be ill-defined. Companies can form their own rules and practices, which is a good thing because it allows them to customize their practices according to the company's needs. However, this can also overextend the nom/gov committee and blur the lines around their responsibilities. Ultimately, the efforts of the nominating and governance committee should strongly contribute to the quality of the board and its other board committees.
Here, we’ll explain:
A 2024 Blue Ribbon Commission report highlighted several forces shaping the future of the boardroom, many of which fall under the nom/gov committee’s purview. In particular, the report highlights that innovation is outpacing board member experience, and strategy timelines are increasingly fast-paced. Cultivating the right mix of board member skills, such as technology proficiency, is an essential responsibility of modern nom/gov committees, but it’s not the only one. The nom/gov committee is responsible for:
Nom/gov committees lead the effort to build a strong, diverse and capable board. Together, they will identify gaps in expertise or representation, cultivate prospective board members and recommend individuals for election or reappointment.
“A nom/gov chair starts with a discussion about what culture do we want to have, what culture do we want to have in the organization, and how does that get reflected in the top of the board,” says Evelyn Dilsaver, board member at Tempur-Sealy, QuidelOrtho and Health Equity.
Nominating and governance committees should coordinate their efforts on director recruitment with existing board discussions related to the company’s strategy, board evaluations and succession planning. The board’s future needs may well be different from its current needs, making it important to consider the types of skills that future boards will need to run a successful company.
As a result, the committee’s work should ensure all candidates share the organization’s mission and values and possess the skills to guide the organization into the future.
To keep the board engaging and high-performing, the committee oversees both orientation for new members and ongoing education for the full board. It also facilitates regular assessments to help the board reflect on its effectiveness and identify areas for growth.
“A nom/gov chair really has to start with, ‘Where is the board? Where is the company?’ because not all companies are really ready for a culture assessment. Some don’t do board assessments of either the committees or the individuals,” says Dilsaver.
Annual self-evaluations are a valuable part of this process, as peer evaluations are. The results will indicate whether the board’s composition is moving in the right direction or whether some changes need to be made.
“At an individual level, it helps to understand what the values are that you’re looking for from a board member so you can understand whether they’re meeting it or not,” says Dilsaver.
Regular evaluations may also indicate that the board needs to change its orientation or training and development.
As boards recognize the importance of working harder on board composition and succession planning, these priorities can dominate the nominating committee’s expectations. However, the nom/gov committee also holds the organization’s governance framework.
It’s up to this committee to review bylaws, board policies and governance practices, taking steps to keep them up to date and reflective of legal requirements and best practices. The committee also monitors board compliance with ethical standards, including conflict-of-interest policies, and works to uphold a culture of integrity and accountability.
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The committee spearheads transition planning for the board and other company leadership. It will identify and prepare future leaders for key roles such as board chair, vice chair and committee chair. Some organizations also charge the nom/gov committee with assisting in CEO succession planning, making it essential to the organization’s long-term stability.
This latter responsibility — filling the CEO role — can be challenging and precarious for nom/gov committees, primarily if the existing CEO is still employed. There are obvious sensitivities with which to contend. The importance of the position also places much concern over getting it right because of fears of failure. For these reasons, nominating and governance committees must closely monitor risks and opportunities. Some companies practice giving the board an annual presentation of the top talent to help the board assess whether the top candidates are developing at the proper rate to be considered for the position of CEO. In assessing talent, the committee needs to evaluate whether candidates are ready now, what they need, and whether they can be prepared for the future. The committee may also decide to move a candidate into a different position so they can gain the necessary skills to put them in a CEO contender position. Ultimately, nominating and governance committees should examine the market and within the company to identify four or five candidates for the CEO position.
The corporate markets are undergoing more change than ever before in their history. In their quest for the best candidates, committees must identify gaps in skills in the current and future boards. This step requires them to look at a wider pool of candidates. A skills matrix is a valuable tool to help identify longer-term and emergency successors. Boards may opt to look for board director candidates who have specific skills and other skills across a broad range of issues.
Personal attributes, such as their character and whether they’ll fit in well with the dynamics of the rest of the board, are also valid considerations.
“It’s worth writing it down on paper so that when you do interview somebody, you can say, ‘Here’s our culture,’” says Dilsaver.
Board directors need to be team players.
Diversity is a major component of good corporate governance. In addition to looking at skill sets, boards should find some balance within their board director ranks that considers gender, ethnicity and international diversity if the companies work across different markets.
Another consideration that many committees overlook is seeking potential in candidates who haven’t served on a board of directors before. They may have the skills to perform a stellar job with the help of a mentor.
Headhunters are another resource that committees can use to look for candidates outside their purview. When using headhunters, be unambiguous in what you ask for. Challenge the representative to look beyond the usual cast of board director candidates. If boards need specific skill sets, an alternative is for committees to set up an advisory board so they can access niche skill sets.
The nom/gov committee is often the board’s lead committee. It will evaluate the structure, role and effectiveness of all board committees. Boards look to this committee for recommendations on committee assignments that align with members’ strengths and interests and suggestions to either form or dissolve committees based on the organization’s strategic priorities.
This oversight isn’t absolute, however. With no regulatory trigger for nominating committee requirements, boards are left to manage these tasks on their own. The lack of regulatory requirements also means that boards should clarify what they expect from their nominating and governance committees, including their activities and the processes to carry them out. For example, boards may set up the charter for their nominating and governance committees to manage board director succession planning, senior management succession planning and more.
Nom/gov committees once focused squarely on board nominations and bylaws. However, in recent years, the committee has steadily evolved into one of the most influential committees in corporate governance. As stakeholder, regulatory and public scrutiny mount, it’s the nom/gov committee’s oversight that can keep boards focused, effective and responsible.
This shift has not only elevated the committee’s profile but also introduced responsibility over high-impact areas like:
The best nom/gov committees embrace their role as strategic partners to the board. Here are several best practices nom/gov committees can use to boost their profile — and their effectiveness.
As the nom/gov committee's scope expands, so does the need for streamlined workflows, timely insights and secure collaboration. While what they oversee makes the nom/gov committee essential, it’s how they operate that makes them invaluable.
A dedicated board portal can simplify governance processes, centralize key documents and ensure your committee members have the right information at the right time. Diligent Boards, part of the Diligent One Platform, is purpose-built for good governance:
Discover Diligent Boards or request a demo to see more features that modernize governance.
The nominating and governance (nom/gov) committee is a standing board committee responsible for identifying and vetting board candidates, overseeing governance policies and practices and guiding board structure, performance and succession planning. As board responsibilities have expanded, so has the scope of the nom/gov committee, making it a key driver of strategic oversight, ethical leadership and board diversity.
Unlike audit or finance committees, which focus on organizational performance and compliance, the nom/gov committee focuses on the board itself — its composition, effectiveness and alignment with governance best practices. It ensures that the board has the right mix of skills, structures, and policies to govern effectively in a changing environment.
A strong nom/gov committee charter should clearly define the committee’s responsibilities, including board recruitment and nominations, governance policy oversight, board evaluations, succession planning, committee structure review and board education. It should also outline membership requirements, meeting frequency and reporting obligations to the full board.
While not legally required, most high-functioning boards — especially in corporate, nonprofit, and healthcare sectors — establish a nom/gov committee to ensure consistent and accountable governance. For smaller boards, these responsibilities may be handled by the full board, but having a dedicated committee ensures focused attention on long-term board health and leadership continuity.
Nom/gov committees are typically composed of independent, experienced board members trusted to exercise sound judgment, strategic thinking and discretion. Many boards also aim to include members with governance, legal or leadership development expertise. The committee chair is critical in setting the committee’s tone and direction.
The nom/gov committee plays a central role in advancing board diversity by embedding DEI into every stage of recruitment and evaluation. This includes setting inclusive criteria for board roles, expanding candidate pipelines, using blind or competency-based assessments and fostering a board culture that values diverse perspectives and lived experiences.
Warning signs of an underperforming nom/gov committee include:
If these issues persist, it may be time to revisit the committee’s charter, membership, or support tools.
