NEW YORK, September 12, 2012 – Significant changes in corporate governance are impacting boardroom dynamics, compelling directors to spend more time on board work and prompting them to reconsider their oversight approach, according to the 2012 Annual Corporate Director Survey issued today by PwC US. Directors acknowledge that challenges remain and expect to increase their focus on critical areas including board composition, risk management and IT oversight.
“Corporate directors are in the spotlight as never before,” said Mary Ann Cloyd, Leader for PwC’s Center for Board Governance. “PwC’s Annual Corporate Director Survey shows an attitude shift among directors grappling with change – indicating their progress to-date, and reveals ways to enhance performance and adjust to the altered landscape.”
In the summer of 2012, 860 public company directors responded to the survey. Of those, 70 percent serve on the boards of companies with more than $1 billion in annual revenue. PwC structured this year’s survey to provide actionable feedback directors can use as benchmarks to help evaluate their performance in core areas that are “top of mind” to today’s boards.
“Our survey provides the candid views of some of the most influential and well-respected directors, reflecting the practices and boardroom perspectives of today’s world-class public companies,” said Cloyd. “At a time of unprecedented regulatory change and shareholder scrutiny, the survey offers valuable insights that will help directors effectively meet the challenges of their critical roles and achieve quality governance.”
Key survey findings include:
Board Composition and Behavior
Considering topics of ongoing regulatory and shareholder interest, directors say they are most concerned with and spending the most time on two: mandatory audit firm rotation and proxy access. The SEC estimates that almost 6,000 companies will be affected by the conflict minerals provision of the Dodd-Frank Act, but 85 percent of directors do not expect to spend much time discussing conflict minerals and 75 percent report “not much” or no concern with the issue.
Additional stats and data are available at: http://www.pwc.com/us/directorssurvey
About PwC's Center for Board Governance
PwC's Center for Board Governance is a leading resource to enable directors to more effectively meet the challenges of their critical role. By promoting leading governance practices the Center promotes excellence in the boardroom and is dedicated to better enabling boards and audit committees to perform their important roles. To provide timely updates to board members, the Center publishes the Annual Corporate Director Survey, quarterly To the Point, monthly BoardroomDirect, and offers forums for directors to discuss current issues.
For more information, please visit http://www.pwc.com/US/CenterForBoardGovernance.
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