The Expectations of Public Company Directors Continue to Rise and the Work is Increasingly Challenging
As the business world becomes more complex, organizations are becoming harder to lead and manage, with scrutiny from investors, regulators, shareholders, activists and the media on the rise. There are growing expectations that directors will more closely oversee areas that have historically been management’s responsibility, from the talent pipeline to corporate culture
While public company boards have made much progress over the past decade in upgrading their governance, the pace of change is not as fast as many stakeholders desire. Board quality and composition are at the heart of corporate governance, yet boards select many directors in the absence of a comprehensive understanding of their needs and long-term strategy. Some directors, especially those who are both long retired and long tenured, are challenged by the rapid pace of change in the modern business environment
Institutional investors are looking for more data and higher quality insights. To help fill that void, Russell Reynolds recently partnered with The Conference Board to undertake a detailed analysis of Russell 3000 and S&P 500 companies, collecting data, examining corporate governance practices, and answering some of the most common questions about how these companies are overseen – and by whom.