Feeding Two Birds with One Scone

August 11, 2025

Dear Friends of Trewstar:

A new era of director education has arrived – one that calls for intentionality, relevance, and strategic alignment. 

A recent Trewstar study revealed the growing importance of director education for boards throughout the country.
 
Wait - why are we writing to you about director education now, when it has been a blossoming industry for more than 20 years? Because while not the most pressing issue raised when we conduct a board evaluation, directors say that institutional investors are demanding that boards go beyond perfunctory box checking in offering director education.  

Directors who speak with investors report that they are increasingly asked about the specific type and frequency of the continuing education their companies provide for directors. Questioners want to know the topics being covered and the quality and scale of these programs.

Chevron’s recent proxy statement even includes a Q&A with each nominated director: “Which trainings from the board in the past year have you found most beneficial or particularly interesting, and why?” or “Which facility visit over the past few years has enhanced your perspective, and how?”

Our research on 56 large U.S. public companies found that 48% cite their director education programs as evidence of best governance practice, 77% include director education in their proxy statements, and 57% have made education an explicit responsibility of their governance committees. The trend line is compelling.

Multiple forces are driving this recent emphasis on director education. Many sense that the tsunamis of technological change and geopolitical dynamics which are accelerating across multiple dimensions, make it more imperative than ever that directors are apprised of rapidly evolving trends and the newest findings. 

Interestingly, a thoughtfully designed director education program can “feed two birds with one scone.” It can not only increase the understanding of each director and respond to legitimate investor concerns but can also build valuable boardroom cohesion and cultivate a culture of continuous learning within the director group.

An NACD study found that 49% of directors believe their board does not allocate enough time for director education. This comment reflects the reality of time-constrained board meetings with full agendas. Director education can be addressed without draining the board’s time and resources. Each governance committee can select the most relevant topics for its particular board and the best mode of learning for each, including expert speakers for the full board or committees, deep dives at board meetings or in separate shared or asynchronous sessions, site visits, public courses or tailored trainings and individual learning. Content should be thoughtfully designed to reflect evolving market dynamics, technological advancements, best-in-class governance practices, input from the CEO, and directors’ own reflections on areas for continued development.

One cautionary note: Board education alone is not a substitute for having the right mix of skills and experiences around the table. Too often, director education programs equip board members with “Five Critical Questions to Ask” on whatever the topic might be. This is not sufficient. Board leaders must still ensure that enough directors possess the relevant, current expertise to fully engage in the follow-on conversation. They should also be able to evaluate the depth, astuteness, and sophistication of the management team member or outside expert presenting the materials.

We look forward to hearing your thoughts on this multi-dimensional topic and to helping boards devise the optimal education programs as part of a comprehensive board evaluation and implementation program.

All the best!                                                        



Beth Stewart & The Trewstar Team