Corporate Governance Reporting: Best Practices

Published on March 15, 2025 • Corporate Governance

Board of directors meeting discussing corporate governance

Effective corporate governance reporting has become a critical factor in building investor trust and demonstrating organizational accountability. As governance standards continue to evolve, public companies face increasing pressure to provide transparent, comprehensive disclosures about their governance practices. This guide from GetFeatured examines best practices for corporate governance reporting that satisfy regulatory requirements while effectively communicating your governance story to investors.

The Evolving Landscape of Governance Reporting

Corporate governance reporting has undergone significant transformation in recent years, driven by:

Heightened investor focus on board effectiveness and oversight
Increasing integration of ESG factors into governance frameworks
Growing emphasis on board diversity and independence
Expanded expectations for risk oversight disclosures
Greater scrutiny of executive compensation practices

These evolving expectations require companies to move beyond compliance-focused reporting to more strategic, transparent governance communications. The investor relations team at GetFeatured specializes in helping companies navigate these complex requirements.

Strategic Approaches to Governance Reporting

Effective governance reporting begins with a strategic framework that connects governance practices to business performance and long-term value creation:

Board Oversight and Strategy

Clearly articulate how your board oversees corporate strategy:

Explain the board's role in strategy development and review
Describe how often the board discusses strategic matters
Outline how the board's composition supports strategic oversight
Detail how the board evaluates strategic execution

Risk Management Framework

Provide insights into your risk oversight structure:

Define the allocation of risk oversight responsibilities between the full board and committees
Explain processes for identifying and monitoring key risks
Describe how emerging risks are brought to the board's attention
Outline the cadence of risk reporting and review

Succession Planning

Detail your approach to leadership continuity:

Describe the board's role in CEO and executive succession planning
Explain processes for identifying and developing internal talent
Outline emergency succession protocols
Detail board succession and refreshment policies

Board Composition and Diversity

Comprehensive disclosure of board composition helps investors assess board effectiveness:

Director Qualifications

Move beyond basic biographical information to explain:

How each director's skills and experience align with company strategy
Why specific expertise is relevant to your business context
How the board's collective expertise addresses key oversight areas
Ongoing director education and development activities

Diversity Considerations

Provide meaningful diversity disclosures:

Present board diversity data in a clear, visual format
Explain your approach to building a diverse board
Describe how diversity contributes to board effectiveness
Detail any board diversity goals or commitments

Board Refreshment

Explain your approach to board evolution:

Outline director tenure policies and retirement practices
Describe your director nomination and selection process
Explain how you balance continuity with fresh perspectives
Detail recent and planned board composition changes

ESG Governance Integration

As ESG factors become increasingly important to investors, governance reporting should address how these considerations are integrated into board oversight:

ESG Oversight Structure

Clearly define ESG governance responsibilities:

Identify which board committee(s) oversee ESG matters
Explain the board's role in ESG strategy development
Describe how often the board discusses ESG issues
Detail how ESG performance is reported to the board

Climate Governance

Given increasing focus on climate risks, specifically address:

The board's climate competence and access to expertise
How climate risks and opportunities are incorporated into strategy
Oversight of climate-related targets and initiatives
Integration of climate considerations into risk management

Human Capital Management

Detail the board's oversight of human capital issues:

Approach to workforce diversity, equity, and inclusion
Employee engagement and development programs
Workplace safety and wellbeing initiatives
Talent attraction and retention strategies

Board Effectiveness and Evaluation

Provide transparency into how you assess and improve board performance:

Evaluation Process

Explain your board assessment methodology:

Frequency and scope of evaluations (full board, committees, individual directors)
Whether evaluations are facilitated internally or externally
Assessment techniques used (surveys, interviews, peer reviews)
How evaluation results are reviewed and addressed

Outcomes and Improvements

Demonstrate how evaluations drive improvements:

Changes to board practices resulting from recent evaluations
Enhancements to board information flow or meeting structure
Adjustments to committee structure or responsibilities
Identification of new skills or expertise needs

Shareholder Engagement

Detail your approach to board-shareholder communication:

Describe your shareholder engagement program and frequency
Identify which directors participate in engagement activities
Explain how shareholder feedback is communicated to the full board
Provide examples of governance changes resulting from shareholder input

Reporting Vehicles and Format

Effective governance reporting extends across multiple disclosure documents and formats:

Proxy Statement

Optimize your proxy for governance communication:

Create a governance highlights section summarizing key practices
Use visual elements to improve readability and engagement
Develop a coherent narrative that explains governance in context
Ensure language is accessible to all investors, not just governance specialists

Corporate Website

Leverage your website for more dynamic governance disclosure:

Maintain a comprehensive, easily navigable governance section
Provide access to key governance documents and policies
Include director biographies with skills and committee roles
Consider video content featuring board leadership

Sustainability/ESG Reports

Integrate governance reporting with sustainability disclosure:

Include governance as a core component of ESG reporting
Connect governance practices to sustainability performance
Align governance disclosures across reporting vehicles
Consider integrated reporting approaches

Conclusion

Effective corporate governance reporting has evolved beyond compliance to become a strategic communication tool that builds investor confidence and demonstrates board effectiveness. By adopting these best practices, public companies can provide the transparent, comprehensive governance disclosure that today's investors expect while effectively communicating how their governance practices support long-term value creation.

For expert assistance in developing corporate governance reporting that meets evolving investor expectations, visit GetFeatured.org and explore our comprehensive investor relations services designed specifically for public companies.