Survey findings by The Conference Board and PwC show how directors and management can work together to further enhance board performance
New York, December 16, 2020 - In a survey of 551 public company C-suite executives, The Conference Board and PwC found that executives see a significant gap between directors’ strong understanding of the company, and their overall effectiveness as board members.
On the upside, roughly nine out of 10 C-suite executives say their board understands the company’s strategy, key business risks, competitive landscape, culture, shareholders and talent pipeline. However, 40% of executives think their board falls short in overall effectiveness, citing concerns about preparedness and expertise, inadequate oversight of crisis management, overboarding and more.
“Executives provide strikingly high marks to outside directors on their understanding of the company’s business and culture,” said Paul Washington, Executive Director of The Conference Board ESG Center. “But management wants boards to be more, rather than less engaged – and to bring more experience, preparation, and diversity to the table.”
“Executives still view their board as a strategic resource as they look to navigate today’s complex and uncertain business environment,” said Maria Moats, PwC, Partner, Governance Insights Center. “Directors are seasoned business leaders and their strong grasp of the company has never been in doubt. The survey’s findings present a unique opportunity for directors and executives alike to strengthen their relationship to further advance long-term shareholder value and the interests of the company’s key stakeholders.”
To view the full findings of Board Effectiveness: A Survey of the C-suite, visit: http://www.pwc.com/us/executivesurvey
Executives believe directors are in sync with company challenges and goals
Executives want board turnover
Management wants the board to be more engaged, not less
The COVID-19 pandemic put a spotlight on issues with crisis management oversight
Views of the Board are not consistent across the C-suite
Executives and directors share common ground on board diversity’s benefits
The PwC and The Conference Board study, Board Effectiveness: A Survey of the C-suite, gauges the perception that C-suite executives at public companies from across the United States have related to the performance of their boards of directors. In 2020, 551 executives participated in our survey. The respondents represent a cross-section of senior executives from over a dozen industries, the majority of which have annual revenues of more than $1 billion.
The Conference Board is the member-driven think tank that delivers trusted insights for what’s ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org
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