Consistent with last year’s survey, 70% of 751 US directors (public: 61% | private: 39%) responding to Spencer Stuart’s recent pulse survey identified long-term strategy/performance as a topic needing more discussion time in the boardroom—leading other enumerated topics such as CEO succession and talent/human capital—by a wide margin. On the flip side, 37% of respondents identified ESG and DE&I as needing less discussion time, trumping other topics including activism and geopolitical issues.
Notably, respondents suggested optimizing board meetings and executive sessions by: (i) allocating adequate time for executive sessions (with holding such sessions at the beginning and end of board meetings being characterized as a best practice); (ii) prioritizing agenda items to ensure sufficient time for the most important topics; and (iii) limiting management presentations in the meetings in favor of discussion, as detailed here:
· Properly allocate time for executive sessions. Several respondents said that executive sessions are often either given too little space on the agenda, or time runs out in the middle of a robust discussion. “We always seem to get to the real meaty issues during exec session which is given a minor slot on the agenda,” one director wrote. “And with many traveling directors, time pressure and flight schedules come in to play. We need to allocate sufficient time — if not at the board meeting then immediately after — to really dig into the most important topics.” Holding executive sessions at both the start and end of board meetings, with the time appropriately allocated and safeguarded, was noted as a best practice.
· Offer the right amount of time for the right issues. Some respondents said meeting schedules did not always give enough time to the most important topics, resulting in time wasted on issues of lesser importance and big issues under-discussed. One respondent suggested more two-day board meetings to enable more board discussion. Another said, “We need more coordination on discussion topics before the actual session begins. We need to prioritize which issues to discuss instead of squandering precious time.” Executive sessions at the start of board meetings can help boards work with the CEO to identify key issues and manage time for the rest of the meeting.
· Limit presentations; prioritize discussions. Several respondents noted how management presentations take up huge portions of the time. Even those intended to be “information-only” can consume more time than expected as board members ask questions, and precious time is spent on topics that don’t necessarily need board attention. One respondent suggested that sharing more management presentations several days before the meeting. “The executive team needs to think more carefully about the board agenda and not overloading it with topics that require lengthy discussions.”