NACD Private Company Governance Survey
The State of Private Company Board Governance
Expectations are rising for private company boards, and the business environment is becoming increasingly complex. Against this backdrop, directors seek to understand whether their boards' governance practices align with those of their peers. The 2018–2019 NACD Private Company Governance Survey offers insight into the priorities, challenges, and composition of private company boards.
Talent Deficits Are Seen as the Issue of Greatest ConcernFor the first time, directors at private companies rate key talent deficits as the top trend (46%) most likely to impact their organization over the next 12 months—up from number two last year and number three the year before that. Attracting, developing, and retaining key talent is critical in today’s hypercompetitive marketplace.
What five trends do you foresee having the greatest effect on your company over the next 12 months?
Private Company Boards Lag in Cyber-Risk OversightLess than half of private company directors (48%) report that their own understanding of cyber risk is currently strong enough to provide effective board oversight. Perhaps most worrisome, just 45 percent of directors are confident that their organization is properly secured against cyberattacks.
To what extent do you agree or disagree with the following statements?
Private Company Boards Strengthen Their Understanding of Corporate CultureMuch like their public company peers, private company directors report an improved understanding of corporate culture across all levels of the organization. While 81 percent of private company directors report a strong understanding of the tone at the top of their organization, nearly the same as last year, their understanding of the culture at the middle and lower ranks of the organization rose 13 and 8 percentage points, respectively.
Level of Understanding of Corporate Culture Health
About NACD's Private Company Governance Survey
NACD annually surveys its membership community on key board governance practices and major business trends. We analyze our rich survey data to deliver insights on the state of board governance for public and private companies in a wide range of areas, including board structure, composition, recruitment, diversity, strategy, risk oversight, and shareholder engagement. We also offer custom benchmarking support for members who want to assess how their approach in specific governance areas compares to that of their peers. Click here to learn more about our board benchmarking services.