New York, October 6, 2015 – PwC today released its 2015 Annual Corporate Directors Survey, a comprehensive report based on responses from 783 public company directors. The new report delivers compelling insights into the factors that influence boardroom decisions.
The survey points to the pressure board members face balancing long-term strategic planning and investment with the need to meet short-term investor expectations. Despite the growing influence of activist investors, board members continue to focus on initiatives aimed at enhancing long-term shareholder value. Fifty-eight percent say their strategy time horizon is five years or greater, compared to just 48 percent in 2011. In fact, only 42 percent of directors now say they use a one-to-three year time horizon in evaluating strategy, compared to 52 percent who said so four years ago.
“The growing dichotomy between long-term and short-term thinking is having a notable impact on today’s corporate boardrooms,” said Paula Loop, Leader of PwC’s Center for Board Governance. “Board members are feeling the pressure to focus on near-term results and are opening up direct dialogue with investors. They’re also turning a more critical eye inward in an effort to improve the quality and flow of information from management, gain a better understanding of IT and prepare for potential shareholder activism.”
A sampling of key findings from the report includes:
PwC’s Center for Board Governance is a group within PwC whose mission is to help directors effectively meet the challenges of their critical roles. This is done by sharing governance leading practices, publishing thought leadership and offering forums on current issues. For more information, please visit http://www.pwc.com/US/CenterForBoardGovernance.
PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms, which has firms in 157 countries with more than 195,000 people. We're committed to delivering quality in assurance, tax and advisory services. Find out more and tell us what matters to you by visiting us at www.pwc.com/us.
© 2015 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.