860 public company directors responded to PwC’s 2012 Annual Corporate Directors Survey. Of those directors, 70% serve on the boards of companies with more than $1 billion in annual revenue.
Our study shows that 91% of directors find new board members through director recommendations, suggesting that directors are more comfortable with individuals recommended by someone they know and trust.
A surprising number of boards (37%) have no clear allocation of specific responsibilities for overseeing major risks among the board and its committees.
In our study, strategic planning topped the board’s “wish list,” with over 75% of directors wanting to devote more time to it during the next year.
While directors see the opportunities in emerging technologies like social media, many are uncomfortable with the challenge of effectively overseeing IT strategy and risk.
Our study finds that strategic planning - and devoting more time to it - tops the directors' wish list. Why? Because they know how important it is to have an effective strategy in place for good corporate governance and overall operations. In this age of globalization, an evolving competitive landscape, new technologies and countless risks, having a strategy that withstands today's challenges is a must.
Possible reasons for this attitude toward strategy include changes in the competitive landscape and customer buying patterns, increased globalization, and the impact of new technologies on business models. Consequently, directors may be feeling pressure to be more agile and re-evaluate the strategy more frequently.
In evaluating strategy, it’s imperative that directors have sufficient information that's objective, insightful and measurable.
We identified leading practices that boards use to oversee their company’s strategy and we asked directors which ones have been adopted by their boards.