As a fiduciary to our shareholders it is paramount that NNN REIT conducts business with integrity and with an unwavering commitment to the highest level of ethics in everything we do.
To help ensure that we meet our goal of operating at the highest ethical level, NNN REIT has adopted a set of Guiding Policies, which include our Corporate Governance Guidelines, Code of Business Conduct Policy and Whistleblower Policy. All associates are required to annually acknowledge that they have read and will comply with these policies, and all associates are trained on the Anti-Corruption Policy, the Code of Business Conduct and the Human Rights Policy.
In addition, NNN REIT annually reviews its policies to make sure the policies continue to effectively manage risks for the Company. The Board of Directors and the NNN REIT management team continually stress the importance of and place an emphasis on operating in accordance with best-in-class corporate governance standards. Some of the ways that NNN REIT ensures that we meet our corporate governance goals include:
- Retaining the services of Navex Global / Ethics Point, a premier solution for automating ethics and compliance reporting.
- Performing an annual enterprise risk evaluation by NNN REIT’s internal auditors to ensure that we are cognizant of risks and proactively mitigate such risks. Such evaluation is reviewed by the management team and the Board of Directors to determine if any additional policies need to be enacted or any actions need to be taken to minimize potential risks.
- Managing cyber security and information security risks by reviewing such risks quarterly through the Audit Committee of the Board of Directors; training our associates on cyber and information security risks twice per year and ad-hoc as needed; and, purchasing cyber breach and informational security insurance from a national credit-rated insurance company. We have not had any information security breaches in the last three years.
- Managing ESG matters and risks with a wide range of initiatives, including by having the Governance Committee periodically review ESG matters.
- Electing our directors on an annual basis with a majority voting standard.
- Ensuring our Board of Directors is chaired by an independent, non-employee director.
- Requiring that our compensation committee, audit committee and governance and nominating committee of the Board of Directors are all comprised of independent, non-employee directors.
- Engaging an independent, external compensation consultant to assist our Board’s compensation committee with creating the executive compensation program.
- Annually evaluating the performance of individual Board and Committee members, the Chairperson of the Board of Directors and the Chief Executive Officer.
