Top of Mind for Global Executives
C-suite leaders from the world’s best companies turn to World 50 Group for pragmatic perspectives on urgent business topics and macro trends. To ensure members are taking a holistic, outside-in approach to aligning—and refining—their 2024 objectives, World 50 took inventory of topics dominating boardroom conversations, across sectors. Below, we delve into the key areas that were all the buzz at the Board Excellence February 2024 Summit, from?evolving ESG to increasing cybersecurity.
Capital allocation and CEO succession top board agendas.
The year 2023 was a record one for activist investor activity and CEO turnover, and this year looks no different. Based on an informal poll at the Board Excellence Summit, 41% of board directors ranked capital allocation as their top priority for 2024, followed by:
This suggests that—after successive years of dealing with major, unexpected crises—the board agenda is back to “normal.” There is one big exception, though: Boards and senior teams used to have two to three priorities, but today they have five to six priorities, one member remarked.
Board structure is also top of mind.
For example, in activist scenarios, board structure matters greatly. Mel Lagomasino, chair of the Board Excellence Summit and a seasoned director, views activist investors in two camps: those with ideas to grow or accelerate the business and those with personal agendas. Advice from many in the room: Separate the CEO and chair roles. When activist campaigns heat up, an independent chair can work with a dedicated team to keep the CEO from getting distracted. One tip: If the former CEO stays on as board chair, then the board must set clear rules for the relationship and a firm end date.
ESG is evolving as electrification hype plateaus.
So far in 2024, the U.S. Securities and Exchange Commission dropped its Scope 3 emissions requirement from climate disclosure rules, 苹果 closed its electric vehicle project, and Hertz sold part of its EV fleet. The backstory: As part of its post-bankruptcy strategy in 2021, Hertz partnered with Tesla to help lead the transition to electrification. That experience revealed soft consumer demand for EVs, explained Mark Fields , a director on the Hertz and 高通 boards. The barriers to mass EV adoption—including price, range anxiety, and charging convenience—remain higher than expected. Now, the auto industry is pulling back on EV capacity actions. One perspective: Generative AI underscores the need for good governance, given environmental concerns about data centers, social concerns about job displacement, and the ethical considerations of large language models.
A new Cold War buoys geopolitical risk and cybersecurity as board priorities.
微软 recently caught hackers from China, Russia, and Iran using AI tools to hone attacks. These countries also circumvent U.S. export law. Mike Studeman , an intelligence expert on China and advisor to U.S. defense policymakers, explained to members why China, Russia, and Iran want to form stronger ties: Each country is run by an authoritarian figure set on expanding a sphere of influence and displacing a world order led by Western democracies. Under that scenario, China hopes to become “the strongest pole in a multipolar world,” said Studeman, who warned that China will reclaim Taiwan sooner rather than later.
Anne Neuberger , a cybersecurity advisor to the White House, highlighted the risk posed by Russia-based ransomware attacks and advised businesses to invest in robust backups that help recover data faster. She also signaled that more “sticks” are coming to hold firms accountable for inadequate cybersecurity practices. One tip: Use contract clauses with third-party providers to demand that cyberattacks are reported across the supply chain.
2024 I&D Impact Awards: And the winners are…
Congratulations to the winners of this year’s I&D Impact Awards , recognized for their remarkable efforts to create more equitable workplaces and communities around the world. Chosen from a competitive pool of more than 140 entries from 74 unique organizations, the winners—announced live this week at a ceremony in Miami—represent leaders and teams from 亚马逊 , 康明斯 , 安永 , Ferrero , Inizio Evoke , 金佰利 , Rio Tinto , and Victoria’s Secret & Co. Learn more about the award categories, partners, and judges—and how to get involved next year—here .
Interested in upcoming conversations and membership? Connect with our team at [email protected] .