In this period of historic change — marked by rapid shifts in policy, global alliances and market dynamics — boards have a critical role to play, not only in providing oversight but in helping companies find clarity and direction amid the noise. The fast-moving legal and regulatory environment is reshaping the corporate governance landscape in ways that require fresh thinking and bold leadership. Management expectations are rising, as is the need for directors to bring both vision and versatility to the table.

To explore how executives perceive board performance today, PwC and The Conference Board conducted our fifth annual survey of more than 500 C-suite executives in the fall of 2024.

35%

of executives rate their board’s overall effectiveness as excellent or good.

32%

of executives think their boards have the right expertise.

93%

of executives say they want someone on the board replaced.

38%

of executives think talent management should be a board priority.

Board Effectiveness

In 2024, 35% of executives rated their boards’ effectiveness as excellent or good — an encouraging increase from recent years. While there is still room for progress, the upward trend marks a positive shift in C-suite board perceptions.

Board Refreshment

Even as executives express growing confidence in their boards’ effectiveness, many still believe change is necessary. Ninety-three percent (93%) indicate that at least one director should be replaced — slightly above the previous year and the highest level recorded in our survey — while 78% want two or more directors to be replaced. Directors also recognise the need for refreshment; however, their level of concern is notably lower, 49% and 25%, respectively.

Board Composition

As the world transforms, executives are looking for boards with the right expertise to guide them forward. Yet many see their boards falling short: Only 32% believe their boards have the right mix of skills and expertise. This may explain why executives have been vocal about board refreshment, with their calls for change less about turnover for the sake of change than about bringing in expertise in areas they see as critical to oversight.

Board Role and Engagement

While executives increasingly see boards as dedicating sufficient time to their responsibilities, more — up to nearly one-third — say directors are overstepping into management’s role. This perception may be partly driven by the increased expectations placed on boards to provide robust oversight in critical and emerging areas such as AI. New directors brought aboard to contribute deep subject knowledge may feel both equipped and compelled to engage more directly — sometimes in ways that executives perceive as straying into execution-level matters.

Board Time and Attention

Executives and directors agree that their boards should spend more time focusing on talent and AI, with both ranking them as their boards’ second- and third-highest agenda priorities. But when it comes to the top focus area, they’re not aligned: Directors want to dedicate more time to strategy, while executives are prioritising ESG1 as global regulators scrutinise climate and sustainability disclosures and customers demand more responsible business practices.

Top Risks

Executives and directors view top risks through different lenses. Executives are most concerned with talent, supply chain issues and AI, while directors — perhaps reflecting their broader governance role — focus on strategic disruption, financial performance and data privacy, which they see as fundamental to long-term business stability.

In Volatility and Uncertainty, a Powerful Opportunity

In a rapidly evolving global business landscape, strong board leadership is more essential than ever. Board effectiveness: A survey of the C-suite reveals encouraging signs of growing executive confidence in board performance — yet it also underscores persistent gaps in expectations, priorities and perceptions. From the need for refreshed skills in areas like AI and international strategy to concerns about director engagement and role clarity, the findings make one thing clear: board effectiveness must be an ongoing journey. As companies face mounting risks and unprecedented change, fostering deeper alignment, open communication and mutual understanding between boards and the C-suite will be critical to long-term resilience, innovation and success.

About the Survey

PwC and The Conference Board’s annual study, Board effectiveness: A survey of the C-suite, gauges the perception that C-suite executives at public companies across the United States have related to the performance of their boards of directors. In 2024, more than 500 executives participated in our survey. The respondents represent a cross-section of senior executives from several industries, the majority of whom help to lead companies with revenues of more than $1 billion.

The article was first publsihed by PwC.

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