Boards are facing unprecedented scrutiny. Investors want proof that directors rigorously challenge management, regulators are demanding greater transparency, and executives expect boards to play a more strategic role.
But for many organizations, annual board evaluations are still just a box-ticking exercise.
That disconnect set the stage for a recent M&A Community webinar, in which Christine Abbamonte and Sarah Oliva, Principals in Korn Ferry’s Board Effectiveness Practice, explored what makes board evaluations a genuine driver of performance.
Here are five trends that emerged from that discussion.
1. Boards globally are aiming for higher standards
Expectations for board oversight are rising worldwide. Korn Ferry’s Annual Report on Board Evaluations shows that annual evaluations are increasingly becoming mandatory, with most countries now expecting both the full board and its committees to be reviewed each year.
The UK has set the benchmark for this, because FTSE 350 boards are required to engage an external evaluator under the comply-or-explain principle. Companies are also encouraged to provide a detailed disclosure of their findings, which helps create a transparent culture.
US boards have traditionally been far less forthcoming, but international practices and rising investor expectations are starting to change that.
“A board may not want to disclose its deficiencies, but institutional investors and other stakeholders usually appreciate that it’s making changes,” said Sarah. “It shows the board is committed to continuous improvement and self-reflection.”
2. Three-tier evaluations are quickly becoming the US norm
As US companies increasingly embrace annual board evaluations, the way they conduct them is evolving, with a clear trend toward structured, multi-level assessments. In 2025, 53% of companies in Korn Ferry’s research disclosed using a three-tier model – assessing the full board, committees and individual directors – up from 47% the year before.
There’s also a growing recognition of the value of director-level feedback. 55% of companies now disclose individual director assessments, a 5% increase since 2024. “This underscores the rising focus on individual director accountability and performance,” said Christine.
These assessments give directors a chance to understand how they can improve and contribute more effectively to the board. “By looking at individual directors, you can help identify any skill gaps,” explained Christine. “You can also identify any behavioural dynamics that might impact decisions.”
3. Companies are varying their board evaluation processes
Static evaluation processes quickly lose their value. Recognising this, US boards are increasingly diversifying their methods. 42% of companies now vary the evaluation process every year, up from 36% in 2024 and 12% since 2023.
“Varying the process can help keep these board evaluations dynamic and relevant,” said Christine. “It helps show institutional investors that you’re not just checking the box, and that you’re looking into evolving strategic priorities.”
But this doesn’t always translate into visible improvements. Only 18% of companies disclosed any changes made as a result of their evaluation, down from 24% in 2023. “From an investor perspective, this lack of disclosure limits transparency and raises questions about how serious companies are about evaluations,” Christine added.
4. External evaluators are on the rise, especially among high-performing companies
External evaluation remains one of the strongest predictors of transparency, and therefore value, in board assessments. Korn Ferry’s analysis shows that 38% of US boards used an external evaluator in 2025, up from 35% last year, with a clear upward trend over the past four years. 59% of companies engage them for director interviews, 28% for survey facilitation and 13% for both.
“This is a way companies can make evaluations feel more comfortable,” explained Christine. “It also shows stakeholders that boards are taking this seriously.”
This trend is particularly prevalent among what Korn Ferry calls “the world’s most admired companies”. Of these, 42% use third parties, compared with just 33% of the rest of the S&P 500. “These companies are setting a high bar for board evaluation practices,” reflected Christine. “Their approaches align with global best practices and show a commitment to continuous improvement.”
5. The most effective boards make evaluation a living, learning system
The structure of a board evaluation can help boost its effectiveness. Korn Ferry’s “four Ps” framework – Purpose, People, Process and Partnership – defines the characteristics of an effective review. It emphasizes not only performance, but also leadership, collaboration, diversity, onboarding and education.
“But none of this matters if no changes are made as a result of the evaluation,” warned Sarah. “The most important step is making sure that, after a discussion at the board table about the changes everyone agrees would be impactful, someone is responsible for tracking progress.”
This might involve assigning specific changes to the nominating and governance committee, or setting deadlines for implementation. Boards should follow up on these actions on a quarterly or semi-annual basis to maintain momentum.
Better tech means better governance
Korn Ferry’s research shows that boards are being asked to do more than ever, and traditional processes can’t always keep up. But the right tools can help turn evaluation insights into valuable improvements.
With Ideals Board, directors can easily capture candid feedback, track follow-ups and make continuous improvement a regular part of board life. In doing so, they create more space to focus on the discussions and decisions that truly drive value.