Recommendations and Alternatives

1. Peer Review –The peer review system Is being employed for the last 7 years the
directors are well versed with the process making them at ease with the process. In this
review system, every one of the board members was reviewing the performance of
every other individual member of the board. So there has to be a change in the review
mechanism in order to adjust with changing scenario.The peer review takes around 2 to
2.5 hours .
a. A set of questionnaires can be used to make quantitative judgement rather
then qualitative.
b. A balanced score card approach is one of the ways which can be used for
evaluating the performance of each director at individual level. Doing this will
help each director to work on their all-round development.

2. Board Review – Infosys is all time known for their benchmarking practices in corporate
governance practices which could lead them to the one of the biggest global enterprise.
The company is fair in providing reports to its shareholders on how it is complying to
the recommendations on corporate governance norms which are given by the Cadbury
Committee. It also provides compliance report with regard to code of best practices in
corporate governance

a. Board function is all about governance and deploying board review mechanism
will help the company to become more compliant to corporate governance
norms.
b. NASDAQ mandates that the listed companies should have an independent
director in their board. After being listed Infosys recruited 4 more independent
directors in their board which made a total of 16 directors. Considering the size
of the board, the review at the board level is very much essential so that group
dynamics is kept under check.

Considering these 2 options into mind , the ideal step would be to take advantage of both the
processes for the appraisal measurment. Peer review will help build the director at individual level
by giving critical feedbacks without compromising the confidentiality. Combining this with the new
structure of reviewing board of directors will increase the effectiveness of corporate governance. It
will help in risk management and succession planning.So combining this two options will be best as
there would be 360 degree of board members will be covered.