Boards are increasingly focused on ESG risks, opportunities, and concerns raised by investors – but are often surprisingly divided along gender lines. PwC’s
2021 Annual Corporate Directors Survey takes the pulse of more than 700 directors and covers a broad range of the pressures faced by corporate boards. About 71% of the directors surveyed were men and 29% were women, an important statistic given the sharp differences in opinion highlighted below.
- ESG and Strategy.
- 64% of directors say ESG is linked to their company’s strategy, but only 25% say their board understands it well.
- Interestingly, 18% of directors said mandatory ESG disclosure requirements would be preferable to leaving it up to companies – and twice as many women as men supported this. Female directors were more concerned with the climate crisis, as well.
- Linking D&I to Pay.
- There was a sharp jump in support for linking executive pay to diversity & inclusion – from 39% in 2020 to 51% in 2021. However, only 44% of male directors support this vs. 74% of female directors.
- 51% of directors also expressed support for linking pay to employee satisfaction and attrition rates, and 39% support a link between pay and environmental goals.
- Board Diversity and Refreshment.
- Although 93% of directors agree diversity brings unique perspectives to the boardroom, 31% said the push for diversity results in unneeded directors and 27% said it results in unqualified candidates. This was quite divided along gender lines, with male directors almost twice as likely as female directors to be skeptical.
- The same split was evident when asked why board diversification has not progressed further. 59% of female directors said the issue was over-reliance on director networks to source candidates (vs 31% of men) while 54% of men said the issue was lack of qualified candidates (vs only 21% of women).
- Nearly half (47%) of directors said at least one of their fellow board members should be replaced.
Overall the study showed a focus on change – but in which direction? Increased gender and ethnic diversity on boards also means an increased diversity of thought as boards grapple with the tough issues of the day.
