Shuffling Private Company Board Priorities Reflect Changes in Focus
Sometimes the easiest way to divine top boardroom concerns is to read the financial news. Or you can always ask your directors!
In a recent snap poll of our Private Company Director Directors to Watch Class of 2023, inflation and related economic concerns were ranked as the top issue facing boards, management and staff, with “tone at the top” posting a close second. Next up, logistics and supply chain issues were cited, followed by cybersecurity and ransomware worries, defining ESG metrics and creating internal processes for compliance, and then DEI and racial justice.
Executive compensation, once a real hot button, appeared in the middle of the pack, trailed by the expanding scope of private company director duties as compliance, disclosure and scrutiny move closer to public company norms.
There were a few surprises at the bottom of the list of top concerns for private company boards and directors. Last year’s highly ranked climate concerns and environmental sustainability dropped to the ninth position on our poll and lessons learned from the COVID-19 pandemic ranked an anemic tenth place. Engagement with shareholders and greater accessibility of directors and the CEO to external inquiries, and the role of the CEO and the board in political discourse were the least worrisome elements of governance among the options polled.
Look for our latest group of Directors to Watch in the upcoming March 2023 edition of Private Company Director.