Ray Garcia is a Partner, Paul DeNicola is a Principal, and Ariel Smilowitz is a Director at PricewaterhouseCoopers LLP. This post is based on their PwC memorandum.
Key takeaways:
- Boards recognize growing capability gaps, but recruitment priorities still favor cultural fit. Among directors who believe a colleague should be replaced, 39% cite insufficient expertise, up from 21% last year. Yet just 27% rate specialized expertise as very important when evaluating new directors, compared with 81% for alignment with the board’s culture and ways of working. The gap is especially relevant as boards face rapidly changing capability needs, including AI.
- Core board processes are not consistently delivering the candor and information directors need. Nearly three-quarters (73%) say board assessments could be improved, almost half (49%) say they are not sufficiently candid, and 82% see opportunities to improve board materials. The findings point to a need for more honest evaluation, sharper information, and stronger follow-through.
- Directors see substantial room to strengthen strategy oversight. More than four in five (81%) say their boards can challenge management more effectively on strategy. Directors point to clearer metrics, alternative strategic options and trade-offs, scenario analysis, and peer benchmarking as ways to deepen that challenge and build greater confidence in strategic decisions.
