The Future of the American

Board Report

Governing Disruption Is the New Normal

In a world that seems less governable, the quality of board governance is increasingly vital to the sustainability of our enterprises and trust in our market economy.

The Future of the American Board Report: A Framework for Governing into the Future is based on 10 principles that guide boards to become better stewards of long-term value creation for their stakeholders. It was designed to help meet the broadening expectations, challenges, and uncertain dynamics that will be facing businesses in the coming decade.

The framework offers a clear road map for building high-performance governance in the face of the most influential trends shaping society and transforming businesses. Directors can apply and adapt the framework using implementation guidance included with each principle and Blueprints for key board committees. 

The First Three Principles in the Framework

Principle One: Corporate Purpose

The company’s purpose as defined by the problems addressed and the needs filled by its goods and/or services, should drive its behavior, shape its governance, and position the company to create sustainable long-term value.

Principle Two: Responsibility & Accountability

The board is responsible for the long-term sustainable performance of the company, and governance structures and practices should be designed by the board to position it to function effectively, efficiently, and in an accountable manner.

Principle Three: Objectivity & Oversight

Governance structures and practices should position the board to provide objective judgment and active oversight, supported by board leadership that is distinct from management.

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Framework Contributors

NACD established a commission of 19 corporate governance leaders and experts to reassess the NACD Key Agreed Principles released in 2011. 

Starting in January 2022, the commission met over a six-month period to develop The Future of the American Board Report: A Framework for Governing into the Future. The group was cochaired by Sue Cole (managing partner, SAGE Leadership & Strategy; director, Biscuitville Inc., Diversified Trust Co., Martin Marietta Materials Inc.; and chair, NACD) and Bill McNabb (director, Altruist Corp., Axiom Global, Evelyn Partners, IBM, Nexii, UnitedHealth Group Inc., and Vanilla). The complete list of commissioners is included in the report.