How do corporate directors think they’re doing in their oversight roles? How does this compare to what investors think? What attributes do investors say are important in prospective board members? What about directors? Are communications increasing between directors and investors, as well as other stakeholders? We asked directors and investors about these and other boardroom matters, and the messages vary. Often, it depends on whose shoes you’re in.
The governance spectrum: Differing views from different angles
Where you’re standing often determines what you see. The roles and responsibilities of board members, shareholders, and company management shape their corporate governance perspectives and observations. And their interests and opinions color individual standpoints and perceptions.
In the summer of 2013, PwC conducted two surveys to gain insights from key corporate governance constituents: public company corporate directors and institutional investors. This report compares the responses of these two groups and includes CEO perspectives on some issues. We hope this information helps directors, investors, and company management areas understand where their views are similar and where they differ.
Methodology and demographics
PwC’s 2013 Annual Corporate Directors Survey was conducted among public company corporate directors in the summer of 2013; 934 directors responded, 70% of whom serve on boards of companies with more than $1billion in annual revenue. PwC’s 2013 Investor Survey was conducted among institutional investors in the summer of 2013; 65 institutional investors responded. The investors who participated in the survey represent over $2 trillion in assets under management. PwC’s 16th Annual Global CEO Survey was conducted among 1,330 CEOs in 68 countries between September 5, 2012, and December 4, 2012.
Sources: PwC, 2013 Annual Corporate Directors Survey, September 2013; PwC, 2013 Investor Survey, September 2013; PwC, 16th Annual Global CEO Survey, January 2013.