NACD Survey Uncovers 2025 Board Trends and Areas for Improvement

Change is on the horizon for corporate boards in 2025 as they deal with an increasingly complex and dynamic business environment as a result of the new presidential administration in the United States, the incorporation of artificial intelligence (AI) into business processes and products, and a growing number of severe, crisis-like disruptions.

These are among the top areas of concern for directors, according to the NACD 2025 Trends and Priorities Survey. The survey, featured in the NACD 2025 Governance Outlook report in the article, “Directors Should Prepare to Address Five Dilemmas in 2025,” was in the field from Oct. 21 to Nov. 14, 2024. The survey report outlines five dilemmas boards may confront in 2025 and recommendations to guide their companies through them. Below are other key insights from the survey. 

Trends. As business trends interconnect and amplify each other, boards face the challenge of navigating a landscape in which risks are growing more complex and multifaceted. Among these risks, shifting economic conditions (51%), largely stemming from persistent geopolitical volatility (31%), emerged as the top trend to watch, as cited by respondents to the NACD 2025 Trends and Priorities Survey. Campaign promises from President Donald J. Trump suggest upcoming changes to compliance requirements, as well as in US relations with allies and adversaries. As a result, regulatory requirements (46%), the inflation rate (28%), and supply chain disruptions (27%) are also top of mind for respondents.  

With the rate of AI adoption increasing and the evolution of the technology continuing at a rapid pace, companies are preparing for associated risks. Forty-one percent of respondents ranked cybersecurity threats and 30 percent ranked AI as one of the top trends that will impact their organizations in 2025. Furthermore, competition for talent (37%), growing business model disruptions (29%), and technological change aside from AI (27%) are key trends directors anticipate in 2025, as the demand for workers with technology literacy increases and companies rethink how they deliver products, services, and value.  

Adjusting to frequent disruptions. Faced with these interconnected trends, boards are making more high-stakes decisions and confronting issues they have not been required to before. In fact, 48 percent of respondents believe crisis-like disruptions are more frequent compared to five years ago, while more than half (52%) believe these disruptions are more severe. 

To guide their oversight of mission-critical issues in 2025, respondents believe they should prioritize improving their own operations in the boardroom. Fifty-four percent of respondents noted improving both candor of conversations between board members and board succession planning as important or very important in the coming year. Furthermore, 78 percent of respondents selected strategy execution, 71 percent selected strategy development, and 68 percent selected cybersecurity as important or very important improvement areas. 

Respondents are also prioritizing the relationship between the board and management in 2025. Sixty percent recognized both the candor of board-management discussions and CEO succession planning as important or very important areas to improve. The board-CEO relationship (59%), quality of reporting from management (58%), and executive compensation design (52%) are also top-of-mind improvement areas for the coming year. 

To adapt to these new risks and pressures, boards should focus on strengthening their ability to balance various competing priorities, better positioning themselves to navigate any challenges to come. This includes ensuring directors have the diversity of skill sets, expertise, and experience to guide their organizations through these emerging issues, and encouraging management to focus on long-term objectives, even when short-term plans change in the face of unexpected events. 

Read the full survey analysis and outlined dilemmas in the NACD 2025 Governance Outlook report.

Heather Kierzek is the assistant editor of Directorship.