2022 NACD Private Company Board Practices and Oversight Survey

The 2022 NACD Private Company Board Practices and Oversight Survey report presents an overview of the boardroom processes and procedures of privately held companies. It covers oversight practices and trends in several critical areas, including cybersecurity, ESG, DE&I, and human capital. It also includes information on boardroom dynamics, with data on how directors identify outstanding board performance and common barriers to high-level performance.

Key Findings

Despite inflation, supply chain difficulties, and geopolitical unrest, the competition for talent remains at the top of many private directors’ lists of key trends for the year. For the second year in a row, the increased competition for talent continues to top the issues of concern for public and private company directors alike. Seventy-seven percent of respondents from private companies include the “increased competition for talent” among their top five issues likely to impact their company in the coming year. This issue retains the top spot, even as mounting inflation has shot up the list of private company director concerns.

Private company boards are rising to the continuously evolving challenge posed by cybersecurity threats, adopting key practices in greater numbers. Sixty-eight percent have reviewed their company’s current approach to protecting its most critical data assets (compared to 72% of public company boards) and 65 percent have reviewed the most significant cyber threats and their company’s response plans (compared to 64% of public company boards). They have closed the gap in areas like the assessment of risks associated with employee negligence or misconduct.