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    Nasdaq Survey Report

    2024 Global Governance Pulse

    Review the results from a survey that gathered data from over 870 board members, executives, and governance professionals across organizations and industries globally. The diverse respondents offer a comprehensive view of corporate governance trends and practices and anticipated 2025 board priorities.

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    The goal of this report is to provide data and insights on corporate governance matters to help boards assess and improve their quality of governance and overall effectiveness across five key areas: 

    Board composition and culture

    Board evaluations

    CEO evaluations and management oversight

    Governance practices, processes, and tools

    Strategic and risk topics on the horizon

    Key Findings

    Which skills and experience would most enhance your board’s composition and ensure alignment to the organization’s strategy

    Effective boards are premised upon prioritizing competencies that enable decision-making and oversight of important areas.

    35% of survey respondents emphasize focus on AI and machine learning to enhance board composition and alignment with the organization’s strategy, along with cybersecurity and data privacy (34%) and technology and innovation (28%).

    Proficiency in these areas is necessary for boards to evaluate the impact of technology and AI adoption on organizational growth and oversee the implementation of cybersecurity protections to mitigate risks. A detailed board composition matrix is a useful tool for cataloguing existing board competencies and identifying gaps to address through board refreshment.

    35% of survey respondents emphasize focus on AI and machine learning to enhance board composition and alignment with the organization’s strategy, along with cybersecurity and data privacy (34%) and technology and innovation (28%).

    Proficiency in these areas is necessary for boards to evaluate the impact of technology and AI adoption on organizational growth and oversee the implementation of cybersecurity protections to mitigate risks. A detailed board composition matrix is a useful tool for cataloguing existing board competencies and identifying gaps to address through board refreshment.

    Regular board evaluations help drive continuous board improvement and good governance.

    72% of survey respondents who conduct a board evaluation report the reason stems from the desire to increase the board’s effectiveness and only 8% of respondents report that shareholders, owners, or stakeholders require the board to conduct an evaluation.

    However, institutional investors and proxy advisors provide guidance that a board evaluation is an indicator of effective governance. Survey data supports the best practice view that regular board evaluations help drive continuous board improvement.

    72% of survey respondents who conduct a board evaluation report the reason stems from the desire to increase the board’s effectiveness and only 8% of respondents report that shareholders, owners, or stakeholders require the board to conduct an evaluation.

    However, institutional investors and proxy advisors provide guidance that a board evaluation is an indicator of effective governance. Survey data supports the best practice view that regular board evaluations help drive continuous board improvement.

    Why does your board conduct a board evaluation
    Does your board have a CEO succession plan

    Organizations benefit when CEO evaluations are designed to provide accountability and guidance for growth and long-term success.

    Although 78% of survey respondents review the CEO’s achievement of performance goals defined in the compensation plan, only 50% regularly discuss the CEO’s performance.

    This indicates opportunities for boards to implement CEO evaluation and feedback cycles to maintain alignment on corporate priorities and performance.

    Although 78% of survey respondents review the CEO’s achievement of performance goals defined in the compensation plan, only 50% regularly discuss the CEO’s performance.

    This indicates opportunities for boards to implement CEO evaluation and feedback cycles to maintain alignment on corporate priorities and performance.

    Boards are implementing new meeting structures and tools that lead to greater efficiencies and deepen engagement.

    73% of respondents indicate their board utilizes a hybrid meeting structure (in-person and virtual) and 47% report executive sessions occur at every board meeting.

    In-person meetings are important for the board to align on key decisions, which often occurs in executive sessions. Boards benefit from having the time and space to openly discuss critical matters and understand their peers as they reach alignment on board directives and approvals.

    73% of respondents indicate their board utilizes a hybrid meeting structure (in-person and virtual) and 47% report executive sessions occur at every board meeting.

    In-person meetings are important for the board to align on key decisions, which often occurs in executive sessions. Boards benefit from having the time and space to openly discuss critical matters and understand their peers as they reach alignment on board directives and approvals.

    Which of the following reflects your board's current meeting and engagement practices
    How does your board oversee strategy execution

    The board can provide value to management in establishing strategic direction and overseeing execution of the strategic plan.

    94% of survey respondents report their board monitors strategy execution, with 51% doing so through a defined framework with KPIs and 43% reviewing informal or periodic reports from management.

    By operating with clarity around the board’s role and process for strategic planning and monitoring execution, the board can reinforce strategy and risk are two sides of the same coin. It is important to have a balanced approach of assessing and mitigating risk and ascertaining strategic advantage.

    94% of survey respondents report their board monitors strategy execution, with 51% doing so through a defined framework with KPIs and 43% reviewing informal or periodic reports from management.

    By operating with clarity around the board’s role and process for strategic planning and monitoring execution, the board can reinforce strategy and risk are two sides of the same coin. It is important to have a balanced approach of assessing and mitigating risk and ascertaining strategic advantage.

    Nasdaq 2024 Global Governance Pulse

    Download the full report for a more comprehensive view of corporate governance trends and practices and anticipated 2025 board priorities.