CORPORATE DIRECTORS CITE ECONOMIC CONDITIONS, REGULATORY REQUIREMENTS, CYBERSECURITY AND COMPETITION FOR TALENT AS TOP CONCERNS FOR 2025

NACD's "2025 Governance Outlook Report" Includes Boards' Top Priorities and Trends and Governance Leaders' Perspectives on Issues Changing Board Practices

WASHINGTON, Dec. 12, 2024 /PRNewswire/ -- The National Association of Corporate Directors (NACD), the authority on boardroom practices representing more than 24,000 corporate directors, today released its "2025 Governance Outlook: Preparing for Risk, Taking Opportunities," a forecast of trends and issues that directors and the companies that they serve are likely to face in the year ahead.  

The report cites that "rarely has the business environment both in the United States and globally seemed so promising and so unpredictable concurrently. Artificial intelligence (AI)-driven innovations are unleashing new opportunities, and business confidence levels about accelerating economic growth are soaring, with IPO and M&A markets poised to recover. At the same time, inflation risk may return due to a major US government reset, including tariffs, while geopolitical volatility is expected to persist."  

"The trends and insights revealed in the '2025 Governance Outlook Report' show that boards are focusing on the issues that NACD deems most important, including the evolving economic conditions, the war for talent and the impact of emerging technologies like generative AI. These factors, alongside regulatory changes and an evolving business landscape, will be at the top of board agendas throughout 2025 and impact how boards navigate their companies toward sustainable long-term success," said Peter Gleason, NACD president and CEO.

Boards' Top Five Issues to Balance in 2025 

The report highlights five significant dilemmas that many boards will face in navigating a volatile business landscape: balancing innovation with risk, determining the company's role in social and political issues, managing short-term pressures while maintaining a long-term focus, addressing an expanding governance agenda and prioritizing subject-matter expertise versus general leadership skills in director recruitment.   

Building Long-Term Value: Insights from Leading Investors

The report also includes an article based on NACD conversations with equity market investors featuring 10 takeaways that Boards should consider to align governance practices with investor priorities.

For example, the 2025 capital markets landscape, characterized by volatility and uncertainty, will likely call for more dialogue between corporate boards and investors. Done right, this step helps ensure long-term value creation through effective governance, AI oversight, capital allocation, and shareholder engagement. 

Partner Insights 

Part two of the report captures insights and guidance from NACD partners — Aon, AWS, CAQ, Deloitte, FGS Global and KUNGFU.AI — on the following hot topics:  

• Climate Change in 2025 — Navigating 2025 and Beyond (Aon)

• Reconciling Innovation and Security: A Director's Guide (AWS)

• The Future of the Audit Committee: How Effectiveness Can Enhance Trust  (CAQ)

• Thinking about the Unthinkable — Crisis Scenario Planning and the Board (Deloitte)
• Navigating a New Wave of Reputational Risks (FGS Global)

• Tuning Corporate Governance for AI Adoption (KUNGFU.AI)

Note to Editors

The NACD Board Trends and Priorities Survey was conducted online from October 21 to November 14, 2024. The perspectives of more than 250 directors nationwide informed the report findings. 

About NACD 

The National Association of Corporate Directors (NACD) is the leading member organization for corporate directors who want to expand their knowledge, grow their network and maximize their potential. For more than 47 years, NACD has helped boards and the business community elevate their performance and create long-term value. Our leadership continues to raise standards of excellence and advance board effectiveness at thousands of member companies.  

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SOURCE National Association of Corporate Directors