The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Thu, 21 May 2026 20:45:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Questions to Ask Before Forming a New Board Committee – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Questions to Ask Before Forming a New Board Committee https://corpgov.law.harvard.edu/2021/10/10/questions-to-ask-before-forming-a-new-board-committee/?utm_source=rss&utm_medium=rss&utm_campaign=questions-to-ask-before-forming-a-new-board-committee https://corpgov.law.harvard.edu/2021/10/10/questions-to-ask-before-forming-a-new-board-committee/#comments Sun, 10 Oct 2021 11:22:30 +0000 https://corpgov.law.harvard.edu/?p=140632?d=20211010072230EDT Posted by Paul DeNicola, PricewaterhouseCoopers LLP, on Sunday, October 10, 2021
Editor's Note:

Paul DeNicola is Principal at the Governance Insights Center, PricewaterhouseCoopers LLP. This post is based on his PwC memorandum.

It’s clear that corporate boards have a lot on their plate. From climate change to cybercrime, there is no shortage of emerging risks that demand directors’ attention. How can boards best oversee these matters while balancing existing obligations? Could a new committee be the solution?

How you answer that question depends on your own company and board’s unique circumstances. But before making a decision, there are some universal considerations that every board should think over. Creating a committee can signal that directors are taking the issue it will focus on seriously, but it’s not without its costs. Before moving ahead, it’s wise to put all the options on the table.

Expanding needs

Most boards of large, mature companies have four or more standing committees. That’s the case for 71% of S&P 500 companies, according to Spencer Stuart. Audit, compensation, and nominating/governance are ubiquitous. Executive, risk (mandatory for some financial services companies), and finance committees are the most common beyond those three.

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