Clorox remains at the forefront of good governance, continually assessing our existing framework to identify new opportunities to deliver Good Growth and provide long-term shareholder value.
Steps taken by the board in fiscal year 2018 reinforced a culture of independence and our leadership in adopting best practices.
• Shareholder Engagement
As part of stockholder engagement on environmental, social and governance issues, the board, represented by its independent lead director, collaborated with senior management to meet with significant institutional investors and highlight our progress in areas such as diversity and environmental sustainability, which play a strategic role in long-term growth.
• Expansion of Board Oversight
The board took a number of steps in recognition of the importance of greater oversight for certain critical issues:
- The newly renamed Nominating, Governance and Corporate Responsibility Committee now formally includes corporate responsibility matters. The official change is detailed in the committee charter.
- Consistent with best practices, the board amended guidelines to oversee decisions about the company’s political contributions.
- Standing cybersecurity updates are now part of the agenda at every meeting of the Audit Committee.
• Implementation of Individual Director and Peer Assessments
It’s important for the board to include directors who have the right skill sets to meet our evolving business needs, can offer a variety of experiences and backgrounds, and can bring fresh perspectives.
- Individual director and peer assessments, considered a best practice, are now used by the board to help identify areas of opportunity that would make the board composition even stronger. These assessments also support overall board effectiveness and serve to complement the annual board and committee evaluations that were already in place to enhance the performance of these bodies, as well as overall governance practices.