Key Challenges and Trends
for Boards in 2023
By: Donna Hamlin, Ph.D.
In a world swirling with pandamic recovery, economic, political and social changes, boards are widening their duties and problem-solving as the address how to navigate obstacles and opportunities for the future.
Staying aware of key trends is key to board committee attention. Here are four key topics to consider.
Surges in Activism
2022 has the highest record for activism activity in history. Activists' agenda was to take advantage of low stock prices and stressed financial forecasts of struggling companies. Their focus was on company strategy and operational performance for than past years when the focus was more on M&A and capital allocations.
This noted, the jump in activity has produced higher success for activists. 2022 shows a 200% increase in adoption of shareholder rights plan from 2021.
Preparing and defending again activism has boards busy with updating their bylaws with amendments regarding voting and decision abilities.
Areas for coverage in risk management are broadening. To address this, some boards are separateing Audit and Risk Committees into separate committees: Audit separated from Risk. Others are revising their committee charters to include the new duties and systems to monitor critical functions, safety issues, oversight of the strategies and policies and practices adopted to address risks.
The new areas in cybersecurity, cryptocurrency, ESG, climate, new laws permitting officer exculpation from personal liability for monetary damages expands the committee work. It also requies new expertise to join the boards as new rules regarding disclosure of expertise on boards is now an SEC requirement.
Continued Focus on Board Diversity
Investor expectations for board diversity includes firm investor voting policies and proxy advisory guidelines. The influence from such groups as Vanguard, Fidenlity International and ISS has impact on practices. By esxample ISS recommends againt the Nom and Gov committee and other directors at a company that has no woman on the board.
The disclosure rules regarding diversity are underway. Nasdaq-listed company mush provide annual public disclosures of diversity statistics with a board diversity matrix to comply or disclose their explanation as to why they do not meet the objectives.
Additionally, companies are now subjected to state diversity laws, which differ by states.
Board and Management Relationship
With the expansion of responsibilities, the board and executive leadership are dealing with new pressures. Directors must get more involved in understanding of company operations, challenges and fiduciary expectations. Directors and executive are now encouraged to come together to define their respective roles and responsibilities and authority to ensure the check and balance between governance and mangement and to uphold a healthy collaborative partnership.
Based on our research in 34 countries, the most highly correlated factor for a high performing board is the funcationality of the group dynamics.
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Spring Session – April 7- June 2
- Sept 1 – Oct 27
PREPARE FOR BOARD WORK AHEAD
Governance and director duties are growing as boards address simultaneous challenges on hot topics.
Prepare yourself by registering for our Gold Standard upcoming Board Professional Expert Certification Program.
Cybersecuirty Risk ESG
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This program has two components.
INITIAL ORIENTATION -
An assessment and persona one-one video call with a Boardwise expert. Participants complete an online Board Bona Fide ® assessment to establish current boar readiness. You have a one-hour private session with a board expert coach to revies your profile, discuss what types of boards are the best match and explore suggestions for how to acheive your goal to serve on a board.
GOVERNANCE EDUCATION SESSIONS –
The program is live educational sessions online. The live interactive program includes nine sessions, each of which is two hours.
Governance Session Topics
- Fundamentals of Board Service
- Global Governance
- Financial Foundations
- Board's Role in Strategy and Innovation
- Cybersecurity and Risk Mangement
- Artificial Intelligence and Decision-Making
- Digital Transformation
- DEI Impact on Boards: HCM, ESG and Board Interactions
- Forum: Solutions for Your Specifc Challenges
Why This Program?
Taught by world-class global experts in corporate governance, you will:
- Latest in governance issue and how to manage them;
- Prioritize board roles and responsibilities;
- Understand the economic, legal, reputation and fiduciary responsibilities of directors;
- Feel empowered to ask the right questiosn and make important decisions;
- Understand and improve your effectiveness on a board;
- Lean about best practices for evaluating company financial and strategic performance;
- Improve committee effectiveness and personal director contributions
- Consider ways to improve board mix, meeting effectiveness, relationshps with shareholder and stakeholders and increase overall corporate reputation
- Compare practices and ideas with director colleages from other companies who participate
- Become a more effective, knowledgeable leader in corporate governanace.
WHAT MAKES THIS PROGRAM SPECIAL
Our Board Professional Program is for aspiring and current board members who want to increase their ability to engage meaningfully in discussions of leading-edge topics, ask sharper questions more easily, delve to the core of critical issues and improve proportional impact in a boardroom to create more shareholder value – not just conceptually, but tangibly by helping management think more critically about decisions.
Our program is strikingly different from other certification programs. Here are comparisons in offerings to consider:
Live Interactive Online Sessions Lecture/Presentation
Meet and Speak Directly with Experts Lecture Only
Interactive/Experiential Learning/ ----
Assesses Your Individual Board ---
Style and Value to a Board
Provides Personal Consultations ---
to Guide on Board Options
Added to Our Board Registry for ---
Personal Board Assignments
Cohort Team Learning and Network Solo Learning
Dr. Donna Hamlin
Professor Dr. Fred van Eenennaam
| Jen McClure
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