How are public company boards of directors adapting to movements like ESG and board diversity?
PwC 2022 Annual Corporate Directors Survey
What’s in this whitepaper from PwC:
Expectations from both consumers and shareholders are rising, and as PwC’s annual survey shows, board oversight and practices are shifting in response. Here are a few key findings for 2022 (and beyond):
- Board directors are keen on turnover: 48% would replace at least one member of their board, while 19% would seek to replace two or more. However, despite their desire for change, few directors would be willing to adopt refreshment tools like mandatory retirement or term limits.
- ESG’s performance connection is becoming more tenuous: Only 45% of directors say ESG strategy affects their company’s financial performance, down from 54% a year ago.
- Men on boards are less bullish about diversity: The vast majority (93%) of directors say diversity brings unique perspectives to the boardroom, but male directors are more likely than their female counterparts to question the merits of diversity. Only 29% of female directors say diversity efforts are driven by political correctness, while 64% of male directors said the same.