Results from the Global Board Governance Survey with Protiviti and Broadridge

I am pleased to share with you the report from the Global Board Governance Survey which BoardProspects recently conducted with Protiviti and Broadridge.  There are of course plenty of corporate governance surveys out there, but this survey is unique in that it sought to gain the perspective of more than 1,000 board members and the c-suite on the major governance topics of the day.  The results, specifically where these two groups diverge, is concerning and should serve as a cautionary message to boards that they need to have better communication with the c-suite to ensure stakeholder value is not being compromised.

It should be noted that going into this survey we certainly did not expect complete alignment between the board and the c-suite on every question they were being asked.  They are both coming from different perspectives and that is going to color the way they view certain issues.  However, there were certain areas where I did not expect to see such a level of disagreement between the board and c-suite.  For example:

• Talent Management & Organizational Culture: According to the survey, c-suite respondents believe that the board needs to spend more time and attention on corporate culture as well as hiring and talent management. The post-Covid world has changed the workplace and as a result boards need to do a better job of ensuring management has the guidance and resources to address this new environment.  In addition, the war for talent is only going to escalate in an increasingly cyber world and boards have to support management in this struggle.

• Board Preparedness & Engagement: The survey found that c-suite respondents are less likely to agree that board members come prepared for board meetings and are constructively engaged during the meetings. Although board members can certainly point the finger back at the c-suite that information overload could be playing a role in this perceived lack of preparation and engagement, board members need to engage in a self-assessment as to whether they have the appropriate bandwidth to meet their fiduciary duties. 

• Greatest Perceived Threats to Growth: There is no shortage of threats in today’s world which can impact corporate growth.  Which is why it is critical that board members and the c-suite are aligned on identifying and deterring those greatest threats.  Unfortunately, our survey demonstrates that they do not see eye to eye on these threats.  Board member respondents view supply chain disruption, central bank monetary policy, inflation, and rising labor costs, as the primary threats to corporate growth – while c-suite respondents view new and emerging technologies, corporate culture and geopolitical tensions and conflicts as the greatest threats.  While certainly all of these issues are threats to corporate growth, the board and c-suite should be better aligned on the greatest risks so they can have a unified front in meeting these challenges.

One area where the board and the c-suite do align, but should nevertheless raise a red flag in the boardroom, is with respect to underperforming board members. Only 58% of board member respondents and 36% of c-suite respondents agree that board members falling short of expectations are addressed in a constructive manner. Boards need to do a better job of confronting underperforming board members – either through improved performance or offboarding.

The primary takeaway from this survey is for boards to be proactive in ensuring an open and constructive level of communication and engagement with the s-uite.  Only then can the board confirm that they are acting at all times in the best interests of the stakeholders.