Melanie Nolen, Head of Research at Chief Executive Group, leads intriguing discussions on the priorities for corporate boards heading into 2025. She highlights the surge in focus on growth opportunities and the critical need for improved CEO succession planning. The conversation also touches on how boards are adapting strategies in response to disruptions, such as cybersecurity threats and the evolving landscape of innovation. Insights from the Director Confidence Index reveal shifting sentiments among corporate directors that could shape governance policies.
Growth through mergers and acquisitions is a top priority for public companies in 2025, emphasizing strategic expansion opportunities.
The increasing focus on CEO succession planning highlights the need for stronger frameworks to prepare for leadership transitions amid high turnover rates.
Deep dives
Growth and Strategic Priorities for 2025
Growth is identified as a leading priority for public companies in 2025, with mergers and acquisitions (M&A) being a key strategy for achieving this. The survey highlights a notable increase in the emphasis on CEO succession planning, driven by recent high rates of CEO turnover, prompting boards to reassess and strengthen their contingency plans. Additionally, geopolitical risks have emerged as significant concerns for companies operating internationally, as directors recognize that reputational risks associated with public stances on controversial issues have diversified. Overall, the shifting focus illustrates a movement towards proactive risk management and strategic growth considerations in the contemporary corporate governance landscape.
Challenges in CEO Succession Planning
CEO succession planning ranks as the fourth most important agenda item for directors in 2025, reflecting the urgent need for organizations to prepare for leadership transitions. A surprising statistic reveals that only 21% of surveyed directors rated their succession planning processes as excellent, indicating that many boards may face challenges in this critical area. The survey reveals a concerning trend that a substantial portion of directors recognizes the growing complexity in evaluating and preparing the next generation of leaders to meet future demands. This highlights an urgent need for organizations to improve their succession planning frameworks to ensure readiness in an ever-evolving business environment.
Evolving Cybersecurity and Technology Trends
Directors are increasingly integrating cybersecurity expertise into their boards, with 58% indicating that they have a director specializing in this area, compared to previous years. This shift signals a recognition of cybersecurity as an enduring risk, yet it also reflects a more mature approach to the challenge within boardrooms. The findings suggest that organizations are balancing immediate technological enhancements with long-term strategic innovation, particularly regarding AI, which remains more focused on operational efficiency than disruptive innovation. The evolving priorities indicate that boards are adapting their oversight functions to encompass a broader range of technological and risk management challenges.
In this episode of The Corporate Director Podcast, we’re joined by Melanie Nolen, Head of Research at Chief Executive Group. The discussion centers around the 2025 edition of "What Directors Think," a report jointly produced by the Diligent Institute, Corporate Board Member, and FTI Consulting. Melanie shares insights from the survey, including key priorities and agenda items for 2025, the increased focus on growth opportunities, and the emerging importance of CEO succession planning.
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