From the diversity of the board to oversight of new ESG risks, directors are coming under increasing pressure to rethink governance and decision making processes. Are Caribbean organisations living up to stakeholder expectations? PwC in the Caribbean’s Corporate Governance Survey 2022: Picking up the pace gauged the views of 193 directors from private and public sector organisations across the region to find out.
Snapshot
ESG on the board agenda
More than 60% report that ESG is at least somewhat linked to their company’s strategy and acknowledge its financial impact. Yet only just over a quarter of directors report that ESG issues are a regular part of the board’s agenda and only around 6% believe that their board understands ESG risks very well.
%
would replace two or more fellow directors
Directors want boards refreshed
Around a quarter of the directors believe that at least one fellow board member should be replaced. Of all, 44% would replace two or more fellow directors.
Focusing in not out
When asked about areas that need more time and attention in the boardroom, cyber/digital/technology came out on top (56%). ESG ranked 4th (38%), but may need more oversight and attention given its impact on strategy, governance and risk.
%
plan to take action to address diversity issues
Board diversity struggles to get off the ground
Despite the need for broader perspective and representation, none of the Bahamian directors surveyed feel their boards are already diversified and 38% haven’t taken any action to strengthen diversity over the past two years. However, nearly 81% have or plan to take action to address diversity issues through investing in upskilling or retraining.
Virtual board meetings take their toll
Nearly half of the directors believe that virtual meetings positively impact meeting efficiency. At the other end of the spectrum, over 1 in 4 feel there has been a negative impact on director engagement and over 4 in 10 on the ability to voice dissent.
%
believe that performance targets are too easy to achieve
The paradox of compensation
More than 37% of the directors support incentive plans as a way to enhance long-term shareholder value. 19% think that executives are already overpaid. Over 63% believe that compensation committees are too willing to approve overly generous packages/incentives and more than 57% feel that performance targets are too easy to achieve.
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