Supplementing their prior report (which we reported on here – “Directors Speak!”), Corporate Board Member and Diligent Institute released the full report on their annual survey of public company directors: “What Directors Think.”
Noteworthy takeaways include the following:
Cyber & Climate Preparedness—To prepare for compliance with likely forthcoming (currently proposed) SEC-mandated climate and cybersecurity disclosure requirements, a majority of boards are bringing in consultants or legal experts and about half are getting briefings from the company’s legal team. Between 40% and ~50% are also looking to director education programs to get up to speed.
Board diversity—A plurality of respondents are comfortable with the current level of diversity on their board and are not taking any enumerated actions in view of existing or proposed board diversity requirements. Nearly one-third and one-quarter of respondents reported currently onboarding one or more female or racially/ethnically diverse directors, respectively.
Board structure—While 43% of respondents believe that traditional board structures generally still align with today’s increasing areas of risks and opportunities, one-third were neutral, and one-quarter disagree with the adequacy of the current structure.
Compensation—The vast majority of directors (~80%) believe they are adequately compensated for their role notwithstanding the potential liability associated with corporate directorships. This compares to 20% in 2003 who believed they were adequately compensated.
Composition—All respondents were comfortable that their current board has members with the right experience, skill sets, and talent needed to take the company to the next level.
Respondents consisted of public company directors across market cap sizes and industry sectors. Navigate the report online by topic here.