There's a Wide Gap Between Boards and Management. How to Close It.

Boards of US public companies should theoretically be more effective today than ever before. In the S&P 500, boards have reached record levels of independence and diversity. They have added directors with new competencies and expanded their roles in addressing social and environmental issues. Mindful of their increasing workload, they are also limiting the number of other boards on which their directors can serve.

Yet only 29 percent of US C-suite executives rate their boards’ effectiveness as good or excellent, according to a new survey conducted by PwC and The Conference Board of more than 600 executives at public companies. Many in management are dissatisfied. Their concerns include who is on the board, what knowledge they bring to discussions, and how they engage in the boardroom.  

It is time for this to change. The issues management has raised anonymously in the survey should spark candid discussions not just in the boardroom among directors, but between the board and management.