Blogs

BDO's recent annual board survey of 140 public company directors revealed a number of noteworthy findings including these:

• Board diversity & composition: 81% of respondents (up from 66% last year) said that their board is proactively addressing the issue of board diversity; however, nearly 20% believe their board has room to grow on this measure. 76% of respondent boards use skill set reviews to ensure director expertise remains relevant, and 33% use diversity reviews to promote board refreshment that better reflects the gender/age/racial mix of the company's audience.
• Sustainability disclosure: Representing a sizeable shift, 74% of respondents (compared to 46% last year) don't believe that disclosures regarding sustainability matters (e.g., climate change, CSR) are important to understanding the company's business and helping investors make informed investment & voting decisions. BDO notes that the "shift in focus this year may be attributable, at least in part, to a lesser focus, politically speaking."
• Tax Reform: 64% of respondents reported taking none of several enumerated (common) actions as a result of the new tax law; however, others reported increased capital investment (17%), increased  employee wages (14%), pursuing a merger/acquisition (11%), repatriation of cash to the US (10%), increased dividends (9%), and initiating a stock buy-back (7%).