What’s in a name? If the board decides to tap an existing board committee with the primary responsibility to perform ESG oversight, the next step is deciding whether to change the name of that board committee.

Many committees take the plunge and do tweak their name. The name change can even become sort of a public relations event. It might be mentioned in the “Letter to Shareholders” in the glossy annual report. It might be the subject for a press release. Even a Form 8-K filing with the SEC.

Here are three things to consider when changing a board committee name:

  1. Pause If You Find Your Committee’s Name is Getting a Bit Long – Take your time when renaming a committee. Consider a number of alternatives. Sometimes it makes sense to drop some descriptors in the name rather than keep layering on new names as the committee’s responsibilities grow.

    Long committee names often wind up being referred to internally as acronyms. Take a gander at what a proposed name might look like as an acronym and see if the board can live with it.

    Maybe you wind up with the “Social Corporate Responsibility & Governance Committee.” Otherwise known as “SCRAG.” Yuck. You can test drive potential acronyms on Acronymify.com.

  2. Don’t Get Stuck on Certain Names Just Because They’ve Been Around – I’ve heard of stories where a nominating & governance committee wants to change its name – but is afraid to let go of the “nominating” part of the name.

    So the tweaked name winds up being longer than necessary. To me, “nominating” is subsumed within “governance” and the committee isn’t losing much to drop that vestige of the past.

  3. You’re Not Forced to Include “ESG” in the New Name – Sure, it’s fine to include “ESG” in the new name. But it’s not mandatory. Investors, proxy advisors aren’t demanding it.

    Given that the “E” and the “S” don’t necessarily need to be bound together – and considering that perhaps biodiversity could surpass climate as being of primary importance even in the race to make our planet sustainable – there’s no need to be stuck with “ESG” if it doesn’t work for your board. Not that there’s anything wrong with “ESG” either.
Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Broc Romanek Broc Romanek

As a strategist for the firm’s Corporate & Securities practice, Broc Romanek has a deep understanding of the regulatory and environmental, social, and governance (ESG) marketplace. Prior to joining Perkins Coie, Broc served as editor at TheCorporateCounsel.net, CompensationStandards.com, and DealLawyers.com, where he oversaw…

As a strategist for the firm’s Corporate & Securities practice, Broc Romanek has a deep understanding of the regulatory and environmental, social, and governance (ESG) marketplace. Prior to joining Perkins Coie, Broc served as editor at TheCorporateCounsel.net, CompensationStandards.com, and DealLawyers.com, where he oversaw and managed coverage on issues related to ESG, corporate governance, executive pay, deals, and market trends and analysis.

In addition to his nearly two decades of working as a journalist and publisher, Broc served as assistant general counsel at a Fortune 50 company, worked in the Office of Chief Counsel of the U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance, was a counselor to former SEC Commissioner Laura Unger, and worked in private practice. He also is the author, or co-author, of four legal treatises, and has authored several books focused on the legal industry.