Fresh sector perspectives from PwC's Caribbean Corporate Governance Survey
Boards are taking high-stakes decisions in conditions that rarely offer certainty. The forces of disruption stretch from the impact of artificial intelligence (AI) to geopolitical tensions, climate change, and cyber risk.
Globally, PwC’s 29th Annual CEO Survey highlights how instability is eroding business confidence in the short-term and putting the long-term viability of many organisations under threat. For people in the Caribbean region, today’s tensions and threats are all too real, from warships along the coastlines to the devastation wrought by Hurricane Melissa.
But AI, climate change, and geopolitical tensions are also changing the way we live and work, blurring the boundaries between sectors, and opening up trillions of dollars in potential new revenues.
Ronaele Dathorne-Bayrd
Governance and Sustainability Leader, PwC East Caribbean
Are boards keeping pace with disruption and change?
The majority of the directors in our survey are confident that they understand the strategy of their organisation and the competitive landscape in which it operates.
When we asked directors whether their board spends sufficient time understanding the impact of AI, less than half (42%) agreed. Less than half (37%) also believe that their board has received enough education on AI or has sufficient skills to oversee it. Confidence that their management team has the necessary skills to execute AI strategy is stronger (56%). But given directors’ AI-related concerns in areas ranging from cybersecurity to responsible usage, boards can’t afford to fully delegate AI oversight and governance.
Is there enough time to provide effective oversight?
With the range and complexity of the issues on the boardroom agenda increasing, more time rather than less is likely to be needed. Yet time for oversight has barely changed since our previous survey. Nearly half of directors (47%) spend fewer than 100 hours a year on their oversight role.
There are some exceptions. In particular, directors in Bermuda tend to spend quite a few more hours on their boardroom duties than the regional average. But even here, more than 20% spend less than 100 hours.
Is performance up to scratch?
Dissatisfaction with the calibre and contribution of boardroom colleagues is growing. Nearly half of the directors in our survey believe that at least one board member should be replaced. Around 10% believe that it’s time for more than two to go. Reasons given include lack of appropriate skills/expertise, lack of meaningful contributions, or too long in the post.
As strategic priorities shift, some directors may find that their skills and experience no longer align as closely with the demands of the organisation. But performance is shaped by interpersonal dynamics as well as expertise. A director’s way of interacting can significantly affect boardroom discussions and decision-making. When a few strong personalities dominate or informal hierarchies persist, quieter or less tenured directors may be discouraged from speaking up. Even highly qualified directors can appear disengaged if they routinely defer to more vocal colleagues or choose to keep their insights to themselves.
Clearly, there will always be concerns about the effectiveness or contribution of some board members. More worrying is how many directors highlighted the difficulties of replacing an underperforming colleague. Barriers cited include collegiality and personal relationships. In what can often be close-knit executive and social communities, the desire to maintain harmony can discourage tough conversations about performance and suitability. Other respondents pointed to the ineffectiveness of board assessments.
Are boards realising the benefits of diversity?
Almost all of the directors in our survey believe that diversity brings unique perspectives to their boardroom and enhances board performance. This is encouraging when set against the pushback against diversity, equity, and inclusion (DEI) policies in some other parts of the world.
But in many cases, these positive sentiments on diversity aren’t being translated into concrete actions. Few have changed the composition of their board or amended their selection criteria. When compared to our previous survey, the proportion of boards taking no action at all has increased. Without a comprehensive review of board capabilities, the leadership pipeline risks perpetuating existing norms, leaving the company vulnerable to challenges. As the board evaluates its skill sets, it must also prioritise diversity—a critical factor in driving sustainable business performance and ensuring the company effectively serves its employees, customers, and communities.
Is ESG high enough up the agenda?
From catastrophe risk to the cost-of-living crisis, ESG is a live issue in the Caribbean. Billions are needed for the recovery and reconstruction of homes and businesses in Jamaica after Hurricane Melissa. The knock-on impacts being felt across the region include the losses sustained by insurers and reinsurers, supply-chain delays, and increased operating costs. These impacts often last longer than the physical damage of a climate event. But they can often pave the way for steps to strengthen resilience and diversify supply chains, thereby protecting and creating value in an organisation. They can spur the innovations needed to help rebuild more sustainable economies.
When asked about social and public policy concerns, the ability of the education system to prepare a future-ready workforce comes out on top. AI and digital skills more broadly are clearly an important part of this preparedness. Educators need to provide the foundations, but businesses can also play a crucial role, both in partnership with schools and universities, and within their own work. Priorities include building workforce confidence in new capabilities and fostering curiosity by giving staff an opportunity to use new AI tools. PwC's Global Workforce Hopes and Fears Survey 2025 found that only 14% of employees are using GenAI tools daily at work.
The way forward A roadmap to governance maturity
Just as the world continues to change, so should the way boards recruit, focus their time, and make key strategic decisions. Directors are operating in a more complex and demanding environment.
The way forward
- Empower individual directors and board chairs
- Drive performance and accountability
- Get up to speed with technology and its impact
- Set the tone from the top on diversity
- Show that environmental and social issues matter
Empower individual directors and board chairs
The cornerstone
Individual directors are the cornerstone of a high-performing, accountable board.
Drive performance and accountability
Embrace responsibility
True accountability flourishes when the full board embraces shared responsibility with strategic intent. Recruitment must evolve thoughtfully, targeting the skills and cultural fit that align with the organisation’s current challenges, values and future direction.
Get up to speed with technology and its impact
Cut through the noise
AI can make this data overload even worse, but if harnessed effectively and responsibly, it could also help to cut through the noise and arrive at the insights that allow for real discussion and strategic action.
Set the tone from the top on diversity
Lead by example
Boardroom diversity in areas such as gender balance would send a strong signal to potential recruits.
Show that environmental and social issues matter
We must care
In our small close-knit Caribbean communities, the role of organisations leading in the private and public sectors, must include actions that have a positive environmental and social impact.
About the survey
In late 2025 and early 2026, we surveyed 154 public and private sector directors from The Bahamas, Barbados, Grenada, Jamaica, St. Lucia and Trinidad and Tobago, and included Bermuda for the first time. These directors represent a cross-section of organisation sizes, types, and industries. The questions sought to gain insights into current governance practices, attitudes within boards, and priorities for the future. By comparing the findings against our previous survey in 2024, we also sought to gauge progress and highlight areas in need of further attention. Our sincere thanks to all of these directors for kindly sharing their time and insights.
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