Analysis of boards

Written by Franco Azzopardi, 4 March 2014

For more information about MISCO Directors Network, please visit www.miscodirectors.com 

Recent research carried out by PWC on the Boards (vide http://www.pwc.com/us/en/corporate-governance/annual-corporate-directors-survey/assets/pdf/pwc-annual-corporate-directors-survey-full-report.pdf), reveals some interesting perceptions about boardroom composition, stakeholder engagement, emerging risks and strategy, change in the digital world, and more. 934 public company directors responded to the survey with 70% serving on boards of companies with over id="mce_marker" billion. Good read:

  • 35% say someone on their board should be replaced due to aging, lack of expertise and poor preparation for meetings
  • 48% cite that board leadership is uncomfortable addressing the issue of replacing a board member
  • 54% say that their primary motivation for sitting on a board is intellectual stimulation
  • 30% say it is very appropriate to communicate about corporate governance directly with shareholders. 30% say the opposite.
  • 50% say that their board's policy about communication is inadequate or useless
  • 80% say there is clear allocation of risk oversight among the board and its committees
  • 94% say they receive information on competitor initiatives and strategy
  • 75% of directors said their boards took additional action to oversee fraud risks
  • 15% of directors deem IT revolutionary and critical and 61% want to spend more time considering related risks
  • 35% use outside consultants to advise boards on IT strategy and risk
  • 33% believe that their company's strategy and IT risk mitigation is not adequately supported by a sufficient understanding at Board level
  • 24% say they are not sufficiently engaged in understanding the company's level of cyber-security spend
  • 64% believe that recent regulatory initiatives have not increased investor protection
  • 75% believe that increased regulation has added costs to companies that exceed benefits
  • 56% think that regulation has put excessive burdens on directors.

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