RALEIGH, N.C., Sept. 12, 2018 /PRNewswire/ -- FMI Corporation, the leading provider of management consulting and investment banking services to engineering and construction, infrastructure and the built environment, is pleased to announce the release of the "2018 FMI/CIRT Corporate Governance Study." The research was conducted in collaboration with the Construction Industry Round Table (CIRT)—an association of CEOs of America's leading design and construction companies. The purpose of this study was to explore industry-specific practices around governance processes and the degree to which these resulted in board efficacy. More specifically, researchers investigated an array of factors, including leadership and demographic composition of corporate boards, director training and development methods, and key focus areas of engineering and construction (E&C) boards.
Key highlights of the study include:
- 52% of board chairs are also CEOs at the same organization. This reality presents unique challenges because the role of board chair is distinctly different than the role of the CEO.
- Board diversity is an issue in the E&C industry: 71% of firms do not have a single minority member, and 50% of firms have no gender diversity on their boards.
- Just 34% of E&C industry organizations onboard their new directors, according to survey respondents. Compared to other business sectors, boards in the E&C space are onboarding at an alarmingly low rate.
- Even though directors want training, just 11% of boards surveyed offer any type of formal training to their members.
- Less than one-third of boards conduct regular evaluations—neither individual director evaluations or full board evaluations.
- Study respondents say they spend more time reflecting on past performance than planning for future results. Specifically, almost 40% of a board's time is spent on financial results and regulatory matters, and just 25% is spent on the organization's strategy.
Michael Mangum, FMI's practice lead for peak boards, explains, "Firm leaders don't know what they don't know. They may not realize what a truly effective board can accomplish or what they could be doing better."
To access the "2018 FMI/CIRT Corporate Governance Study," please click here: https://www.fminet.com/special-reports/2018-cirt-report/
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SOURCE FMI Corporation