Governing in the Age of Disruption
BDO USA, Corporate Board Member, and Diligent Institute surveyed 250 U.S. public company directors about the biggest challenges facing them this year.
- Economic indicators: Stubborn inflation, high interest rates and a tight labor market top the list of performance detractors in 2023—and for 2024, directors listed the business cycle as most likely to dictate strategy.
- Strategic governance: Despite the flow of disruption in recent years, only 5 percent of directors have listed enhancing resilience as a top priority in 2024.
- Management oversight: 63 percent of directors say their board could be more impactful in its oversight of management if it could proactively anticipate disruption.
- Board readiness: The most sought-after skills in the boardroom remain C-Suite and industry expertise, as nearly half of directors say they can fill gaps elsewhere with third-party subject matter experts.
- Shareholder engagement: 41 percent say shareholder activism has created more awareness for the need for good governance in the U.S., though the same proportion also say shareholders should be restricted from advisory votes and other transparency rights that second-guess board decisions on company operations.