the staff of the Ridgewood blog
Ridgewood NJ, as geopolitical tensions and trade disruptions continue to shake global markets, corporate leaders are sending a clear message: Boards of directors aren’t stepping up when they’re needed most.
A new survey conducted by global consulting firm Spencer Stuart reveals that only 22% of CEOs believe their boards are providing adequate support to navigate today’s increasingly unpredictable business environment. The findings come as U.S. President Donald Trump’s tariffs on foreign imports add further volatility to an already stressed global economy.
Boards Underperforming in Times of Crisis, Say CEOs
The 2024 survey, which included 787 CEOs and 1,694 board directors worldwide, highlights a disconnect between executive needs and boardroom engagement.
“CEOs are reaching out to their boards for counsel in this moment of need,” said Jason Baumgarten, head of CEO and board practice at Spencer Stuart. “It’s really stress-testing the relationship between the board and the CEO.”
While nearly 43% of directors said they believe boards are doing a good job supporting executives in today’s fast-changing landscape, the majority still acknowledge there’s room for improvement.
The Trade War Stress Test: Tariffs Expose Weak Links
President Trump’s tariffs and trade policies have rocked industries, disrupted supply chains, and left company leaders struggling to make strategic decisions.
“Boards are meant to act as strategic advisors in good times and bad,” said one anonymous CEO quoted in the report. “But when your team is working nights and weekends to steer the ship, it would be great to feel like your board is in the trenches with you.”
The Case for More Active Executives on Boards
Interestingly, the study also found that many boards are lacking active CEOs and executives, a trend that may be undermining their effectiveness during turbulent times.
“COVID-19 taught companies valuable lessons about resilience, remote work, and supply chain disruptions,” Baumgarten noted. “Yet, many boards today have fewer active executives than in previous decades, and that’s a problem.”
Companies are now increasingly seeking to diversify boardrooms with current CEOs who bring hands-on, real-time experience in crisis management and digital transformation.
Moving Toward a More Responsive Board Culture
Boards traditionally meet just four times a year, but that cadence may no longer cut it in today’s high-speed business climate. With CEOs navigating economic uncertainty, geopolitical instability, and internal pressure to perform, many leaders are calling for a more “all-hands-on-deck” approach from their boards.
Whether this signals a restructuring of board responsibilities or a push for more agile governance, one thing is clear: The relationship between CEOs and their boards is under intense scrutiny—and transformation may be inevitable.
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