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New Report Provides Insights for Corporate Directors on the Major Issues for 2019

NACD and Leading Experts Help Boards Address Business Challenges

WASHINGTON, Dec. 13, 2018 (GLOBE NEWSWIRE) -- The National Association of Corporate Directors (NACD), the authority on boardroom practices representing more than 20,000 board members, today released its 2019 Governance Outlook: Projections on Emerging Board Matters, an annual road map to guide corporate directors and senior executives as they tackle business and governance issues throughout the coming year.

The report highlights NACD survey findings on the top board priorities for 2019, providing insights and projections from NACD, Baker Tilly, Ceres, Deloitte, and Spencer Stuart on the following themes: business risks, climate change, M&A, regulatory priorities, and board composition and succession.

“This report taps into our unrivaled network of partners to provide critical guidance for CEOs, board directors, and other business leaders as they chart a course for 2019,” said Peter Gleason, president and CEO of NACD. “The insights offered in this document shine a bright light on emerging issues and provide a road map for the year ahead.”

Below is an overview of topics covered in this year’s report:

  • Board Projections for 2019 (NACD): In NACD’s annual survey of public company directors, 62 percent of respondents said that they view disruptive risks as much more important to the business environment today as compared to five years ago, yet less than a fifth (19%) report that they are extremely or very confident in management’s preparedness to address these risks. Looking ahead to 2019, directors rate several disruptors as top trends, including increasing geopolitical volatility, worsening economic conditions, the pace of technology changes, business-model disruptions, and key talent deficits. Accordingly, a large majority of directors, almost 70 percent, report that their boards need to strengthen their understanding of the risks and opportunities affecting company performance. They believe that their boards struggle to keep pace with fast-moving developments that can create or destroy business value.
  • 2019 Strategic Risks for Boards (Baker Tilly): International trade and tariffs, tax reform, cybersecurity, and privacy are key risks that affect boards and organizations. As boards face mounting pressure from investors and other stakeholders to demonstrate proper oversight of these risks, directors should ensure that their organizations are prepared for regulatory compliance, understand the impact of these risks, and have in place a comprehensive monitoring program.
  • Getting Climate Smart (Ceres): Although investors are increasingly focused on the impact of climate change on long-term value creation, few boards are prioritizing this issue as a critical risk for their companies. As climate-related events become more frequent and severe, the business case is likely to become clearer for boards and their management teams.
  • Mergers and Acquisitions (Deloitte): As the number of cross-border mergers and acquisitions continues to rise, it’s critical for directors to leverage insights from previous deals and utilize established practices for reviewing M&A proposals. The following actions are recommended: enhance the deal process, explore multiple potential scenarios, strengthen technology expertise, and cultivate an understanding of global dealmaking.
  • Regulatory Priorities (Deloitte): Boards will need to stay vigilant and ensure that there are adequate policies and mechanisms in place to keep directors informed of regulatory changes as the US Securities and Exchange Commission continues to make facilitating capital formation and cybersecurity disclosure two of its priorities.
  • The Evolution of Board Composition (Spencer Stuart): The following trends in board composition are likely to accelerate in 2019: modest director turnovers driven by term or age limits; increased recruitment of more diverse and nontraditional candidates; and a greater number of young directors in the boardroom.

Visit: ww.nacdonline.org/outlook to download your copy of the report.

About NACD
The National Association of Corporate Directors (NACD) empowers more than 20,000 directors to lead with confidence in the boardroom. As the recognized authority on leading boardroom practices, NACD helps boards strengthen investor trust and public confidence by ensuring that today’s directors are well prepared for tomorrow’s challenges. World-class boards join NACD to elevate performance, gain foresight, and instill confidence. Fostering collaboration among directors, investors, and corporate governance stakeholders, NACD has been setting the standard for responsible board leadership for 40 years. To learn more about NACD, visit www.NACDonline.org.

Contact:
Susan Oliver
susanboliver@gmail.com
703-216-4078

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