Navigating the First Year: A Guide for New Directors

The NACD developed this handbook to support individuals to effectively assume their first major directorship or their first directorship on a public company board. Nominating and governance committees can also use it as a reference to benchmark and improve their new-director onboarding processes.

The handbook provides a 4-part framework for director onboarding with key questions and issues areas to consider and suggested related resources to help director navigate their first year including checklists of materials and meetings appropriate for director orientation programs.

Regardless of the size or industry of the companies they serve, directors are keenly aware that a corporate board is entrusted with the highest level of accountability for company decisions. To meet the demands that come with that level of responsibility, the role of individual directors has become increasingly complex and time-consuming. In 2021, directors who rated their boards as "very effective" in dealing with the pandemic reported spending 40 days per year on board and committee matters that year and almost as many in 2020, up from under 30 days per year in 2019.

The time commitment is even greater for the new director. Not only are you expected to attend the board meetings, including meetings of committees to which you may be assigned, but you’re also expected to attend director-orientation programs and devote substantial time to get up to speed on the company’s risks and opportunities. And that process takes time. Indeed, NACD has recommended that director candidates and boards consider the onboarding process for new board members to begin during recruitment.