The PwC 2012 Annual Corporate Direct Survey found that more than 60 percent of board members see no value in adding board members with HR expertise while 85 percent value industry experience. Additionally, more than 90 percent of new board recruits were nominated due to recommendations by other board members. Nearly one-third of respondents believe that they need to replace their director of the board, largely due to performance hits due to age (30 percent).
Respondent board members reported a vastly improved level of satisfaction with their company’s succession plan with 80 percent indicating that they are either “extremely” or “moderately” satisfied with their plan. Contradictorily, 69 percent of new board directors supported compulsory education and training for board members, yet 20 percent had no board education at all last year and almost 10 percent never use information shared by internal management as an update on current issues.
Greater than 60 percent of directors estimate that proxy advisor firms have more than 20 percent influence over voting at their company. The number of hours spent dedicated to board work was reported to have risen over the past year by over half of directors and over one-third of directors want to use more time focused on crisis management planning.
PwC’s Center for Board Governance Leader Mary Ann Cloyd said that the study displayed “an attitude shift among directors grappling with change” and revealed “ways to enhance performance and adjust to the altered landscape.”