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The Evolving Landscape of Corporate Governance in 2025

The National Association of Corporate Directors (NACD) has unveiled its findings from the 2025 Public Company Board Practices and Oversight Survey report. With responses from over 200 corporate directors in the U.S., the report addresses the pressing challenges boards face amid economic instability and increasing cyber threats. This article delves into the key insights from the report, focusing on how corporate boards are adapting to these new realities.

Cybersecurity: A Top Concern

Cybersecurity has emerged as a significant focal point for board members, with 77% of directors now engaged in discussions about the potential impacts of cyber incidents on their organizations. This is a stark increase compared to previous years, with a 25-point rise since 2022. As threats become more sophisticated, it's imperative for directors to enhance their knowledge and management of cyber risks. Notably, individual cyber-risk training has seen participation from 72% of board members, indicating a concerted effort to improve oversight capabilities. However, gaps remain in terms of comprehensive reporting and access to necessary expertise, as many boards still lack clear roles for cyber-risk oversight.

Shifting Focus on CEO Performance

The scrutiny placed upon CEOs has intensified over the last three years, with 54% of directors noting an increase in oversight of CEO performance. Despite this heightened focus, many board members rated the relationship with their CEOs positively, highlighting a mutual trust. However, challenges persist, particularly around expectations and decision-making processes. There is a clear call for ongoing dialogue between boards and CEOs to strengthen collaboration and clarity in leadership roles.

Supply Chain Management Becomes Paramount

With emerging risks related to global supply chains, directors are increasingly aware of their organizations' vulnerabilities. Approximately 64% of respondents expressed confidence in their management's ability to handle these issues, but only half feel they possess adequate visibility into crucial resilience and innovation metrics. The current economic climate necessitates that boards remain vigilant and proactive in addressing supply chain risks, which are expected to persist or escalate in the impending year.

The Rise of Artificial Intelligence in Governance

Artificial intelligence (AI) is another pivotal issue dominating boardroom discussions, currently a topic for over 60% of boards—an impressive growth from 2023 figures. Nonetheless, many boards face challenges in integrating AI into their governance and risk management structures. NACD advocates for a more intentional approach, urging boards to embed AI oversight within their frameworks, refine committee charters, and adopt clear performance metrics around AI usage.

Conclusion: A Call for Structured Governance

The findings from the NACD highlight that today's boardrooms are at a strategic crossroads, necessitated by the intersection of economic volatility, cyber threats, and technological disruption. Peter Gleason, NACD's president and CEO, has emphasized the essential need for boards to move from engagement to structured governance. While increased participation in addressing these critical issues is commendable, the necessity lies in evolving practices that can lead boards through unprecedented challenges. The NACD continues to champion the development and effectiveness of corporate governance to help board members navigate this complex landscape and make informed decisions for the future.

For NACD members seeking deeper insights and data benchmarking, the full survey can be accessed online, offering invaluable resources for enhancing governance practices in today's dynamic business environment.