Fortune 500 powerhouse, PwC, recently released the results from its annual Corporate Directors Survey. The assessment, which can be viewed here, offers a great deal of insight into how board priorities have shifted in recent years.
PwC also made it clear that they were interested in tracking a particular recent trend. In the report they explain, “We structured PwC’s 2015 Annual Corporate Directors Survey to gauge director sentiment on whether their boards have oriented themselves toward a longer-term governance focus in light of short-termism.”
They further explain the dichotomy between short term and long term focus by saying, “Most companies are looking down the road, focused on ‘enhancing long-term shareholder value.’
Yet they are simultaneously preoccupied with a need to look in the rear-view mirror and meet the short-term expectations of investors in the form of quarterly earnings.” The report is well worth the full read, but here are some highlights:
- Corporate directors continue to rank financial expertise, industry experience, and operational expertise as the three most desirable attributes for board members.
- Female board members continue to place importance on the development of board diversity at rates higher than their male counterparts (63% vs. 35% saying board diversity is “very important”).
- Directors are overall more engaged with IT issues—with 83% saying their board is at least moderately engaged in overseeing/understanding the risks of cyber attacks.
- Directors are less satisfied with their peers’ performances than last year—with 40% saying at least one member of their board needs to be replaced.
- Directors are much more aware of and engaged with shareholder activism than in years past.
- A majority of board members say the format for their board communications could be improved and that the information contained could offer more insight.
At Directorpoint, we found this report to be both useful and fascinating. As we move into an increasingly tech-laden world, it’s no surprise that directors are placing more emphasis on cyber-related risks. It’s also not shocking that expectations are higher for the betterment of board materials and communications.
In fact, those are two of the reasons we created our board management software: to encourage a more collaborative communications environment and to do it as securely as possible. We’re here to help take boards of directors to the next level of efficiency.
To see our software in action, just schedule a demo with us today! We can’t wait to show you how Directorpoint’s features can transform your board.