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Navigating the board’s expanding role
Against macroeconomic uncertainty, geopolitical conflict, a tight labor market and shifts in consumer habits, companies are trying to execute strategies that can keep the business relevant well into the future. Corporate governance needs to keep pace with that change.
As a director, your oversight responsibilities have greatly expanded amid this global uncertainty. Even experienced boards can’t always foresee emerging risks like cyber attacks, data loss, regulatory shifts and extreme weather. However, you are rising to the challenge by adding members with essential skills, deepening your understanding of corporate strategy and enhancing governance practices. What hasn’t changed: a commitment to leading the company to a position of strength.
In the spotlight
Board readiness: Navigating the 2025 Trump agenda
Are you trying to anticipate the new administration’s next move? From tariffs and potential tax cuts to rolling back pro-climate regulations, taking aim at corporate diversity, equity and inclusion programs and promoting domestic energy production, boards are assessing how President Trump’s policy shifts will impact their business.
Stay informed and act now to align your strategy with these changes and keep your company one step ahead.
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76% of directors say the US regulatory environment poses a moderate or serious risk
Source: PwC Pulse Survey, October 2024
What to focus on in 2025
Board governance
Lead on board effectiveness
With long-standing board governance practices under the microscope, directors are taking a fresh look at board objectives and how they conduct their oversight responsibilities. Effective corporate governance starts with an independent, well-composed board that reflects a diversity of experience, skills and opinions. Getting the board’s composition right often involves a balancing act between preserving institutional knowledge, adding much needed experience and replacing underperforming members.
Use the board assessment process to help reach that ideal balance. This includes candid discussions about board refreshment, director performance, tenure and a mandatory retirement age. And try not to recoil from the idea of temporarily expanding your board when the right candidate comes along. Retirements and resignations can offer opportunities to downsize later.
Additional ways to lead on board effectiveness
Board governance
Why boards should evaluate individual director performance
Assessing directors' performance helps identify skill gaps, improve dynamics and confirms alignment with the company’s strategy.
Board composition
Board composition: Building your dream team
Find out how boards can tackle board refreshment and succession planning in a rapidly changing business environment.
Board composition
The 9 questions you need to ask to take your board from good to great
How can you boost effectiveness and efficiency to improve oversight? By asking key questions on board composition, performance assessments, leadership and more.
49% of directors want at least one person on their board replaced
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