Increasingly assertive institutional investors, aggressive hedge fund activists, empowered ESG experts, and powerful proxy advisors are ramping up their demands on public company boards. These and other influential stakeholders are scrutinizing corporate boards to see if they have the right people to succeed—and that they are committed to effective refreshment, board succession, and board evaluation practices. For these reasons, Russell Reynolds is updating its prior advice to directors and boards on how to successful navigate these heightened expectations. Those found wanting are more likely than ever to face meaningful consequences, including losing for support incumbent directors in both contested and uncontested elections.

Part of the reason for this enhanced attention is simple: the work of boards has never been more difficult and important. From the unprecedented challenges of the COVID-19 pandemic, economic volatility, geopolitical instability, and board agendas bursting at the seams with topics new and old, boards and their members are being tested like never before. Many boards have risen to the occasion, providing steady and thoughtful leadership; others have struggled, failing to add (or eroding) value.

Against this backdrop, many boards and leadership teams have taken a step back to evaluate their composition and effectiveness, asking themselves tough questions:

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