Economic Recession Looms as the Top Concern for Corporate Directors.

As part of its 2023 Governance Outlook: Projections on Emerging Board Matters, the National Association of Corporate Directors surveyed more than 300 directors on their expectations for the coming year as well as what areas they deem as important for their boards.

When asked what trends they believe would have the greatest impact on their companies, 64% identified the threat of economic recession. Increased competition for talent was identified by 59% of respondents, while 57% see growing inflation as a major factor of concern. Disruptions in the global supply chain are a major concern for 37% of respondents, and 34% of those surveyed are highly monitoring increased regulatory requirements and changing cybersecurity threats. Among the trends that do not appear to be keeping directors up at night are increased social activism and the impact of COVID-19, both of which were noted by just 5% of those surveyed.

The survey also queried directors on their outlooks for the U.S. economy as 2023 ramps up. When asked what stage of the economic cycle the nation would be in by the end of Q2 2023,65% of directors surveyed predicted the economy would be in recession, while 29% believe the economy will experience a "soft landing." Fewer than 1% of respondents believe that the nation will go through a depression.

As for areas of board improvement over the next year, 83% of directors believe it is either very important, important or moderately important to improve CEO succession planning in 2023. Ninety percent of those surveyed hold the same opinion about oversight of strategy development, and 75% of those responding...