Western Independent Banker - November/December 2008 - (Page 39)

By Nancy Jennings, Editor-in-Chief, Western Independent Banker Board Portals Streamline Efficiency for 21st Century What Is a Board Portal? A board portal is a secure and password-protected website designed to facilitate board communications, accessed by management and directors through a web browser. Board portals provide the senior leadership at companies the potential to better manage and distribute information to their boards of directors and improve overall communications. General counsels, corporate secretaries and corporate governance officers create material and post information intended for directors to the board portal site, available for review anywhere, anytime. For directors, the use of web-based corporate portals or digital board books provides quicker access to corporate information, which in many instances previously required waiting for the large briefing book in advance of board meetings. This web-based technology was nonexistent in 2000. They are now used by as many as 20 percent of U.S. corporate boards, according to the National Association of Corporate Directors. Old versus New in Board Communications The logistics of getting board books to a geographically dispersed set of directors has always been a challenge for corporate secretaries. And it’s been no picnic for directors, either. They would either receive the books with just days to spare before a board meeting or they get them weeks earlier, and need to insert and replace pages as they get updated. Web-based portals— when properly implemented and used—can enable a bank’s board to streamline their agenda and introduce new, more efficient procedures because information can be handled faster. Beyond access to materials in advance of board meetings, board portals can serve as an online resource center for bank directors. Via the board portal, directors can access the company website, links to any number of industry resources and archived materials. Board portals also serve as an efficient method for directors to locate minutes and materials from previous board meetings, eliminating the need to retain hard copies. According to many general counsels, this is a benefit not only to directors, but also the company in case of litigation since directors’ notes on hard copy board books are discoverable during litigation. And because these portals are “searchable” busy directors who would never have the time to wade through stacks of board books and materials can easily locate relevant information. “The traditional methods for distributing board books create a number of logistical issues and even potential legal exposure for many banks,” said Marc Daniels, chief operating officer for Diligent Board Member Services. “The use of a digital board book, accessed through a board portal, eliminates the risks associated with delivering traditional, hard copies of board books while allowing this information to be available in a much more timely manner.” Community Banks Are Enjoying the Benefits Bank of Marin: The Corporate Secretary’s Perspective One believer is Nancy Boatright, senior vice president and corporate secretary at Bank of Marin in Northern California. The bank’s 14-member board needed a faster, more efficient method to replace the cumbersome delivery of information prior to meetings. Emailing information to personal email addresses posed a security risk, so they set up bank email addresses and then notified the directors to retrieve the information. Before the 2007 WIB Annual Conference, they received a postcard from a board portal vendor that was exhibiting Board portals provide the senior leadership at companies the potential to better manage and distribute information to their boards of directors and improve overall communications. General counsels, corporate secretaries and corporate governance officers create material and post information intended for directors to the board portal site, available for review anywhere, anytime. Western Independent Banker November/December 2008 39

Table of Contents Feed for the Digital Edition of Western Independent Banker - November/December 2008

Western Independent Banker - November/December 2008 Contents A Message from the President & CEO A Practical Approach to Director Evaluations Director Assessment: New Standards for a High Performing Director The Best of the West: Traits of High Performing Banks Best Practices Checklist for the Audit Committee The Real Performance Metric: It Takes a Balance of Profitability and Growth to Be Successful The Role of the Board in a Credit Crisis A Bank Director's Obligation to Be Aware of Regulatory Change Benefits Tied to Performance Receive Higher Approval Rating by�Board Members Increasing Shareholder Value: Key Profitability Drivers Board Portals Streamline Efficiency for 21st Century WIB Service Corporation Report WIB Calendar Welcome New Members Index to Advertisers advertiser.com

Western Independent Banker - November/December 2008

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