PwC’s 2021 Annual Corporate Directors Survey highlights stark differences in director views compared to prior years in the areas of ESG, diversity & inclusion (D&I) and linking executive compensation to non-financial goals.
Directors are once again calling for new faces on boards — with nearly half (47 percent) saying that at least one fellow board member should be replaced, according to PwC‘s annual directors survey. And while they say their boards are prioritizing racial/ethnic diversity in their future board searches, many directors still have reservations about what’s driving board diversity efforts. (Click here to download the report.)
Last year, most directors (71 percent) believed that board diversity itself would happen naturally. Now, just 33 percent agree with that statement. But despite increased support for board diversity, many directors are skeptical. A majority (58%) of directors say that board diversity is driven by political correctness, up six points from 2020. Directors are now also more likely to say that board diversity results in the nomination of additional unneeded (31 percent) or unqualified (27 percent) candidates.
“Regardless of the motivations behind it, directors are supportive of many methods for achieving diversity,” said Maria Moats, leader of PwC’s…
