How are public company boards of directors adapting to movements like ESG and board diversity?
Exploring the Changing Governance Landscape
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.