Investors Are Becoming More Focused on Board Quality and the CEO Role.

According to Global Corporate Governance Trends for 2023, the latest report by Russell Reynolds Associates, the three most pressing issues for boards on a global scale for the rest of the year and beyond involve skepticism about board quality, increased focus on the role of the CEO, and development of ESG programs and disclosures.

The report, which encompasses insight from global institutional investors, shareholder activists, pension fund managers, regulators and other corporate governance professionals, includes information on trends affecting boards in countries such as Mexico, Brazil and the United Kingdom.

From a U.S. perspective, the report found the most significant trends to be focused on:

* Board quality. Support levels for directors are expected to decline further, with investors increasingly committed to factors such as board diversity and non-preferred governance practices.

* CEO performance and succession planning. Respondents expect a bumpy economy and unrest in the economic markets to result in more attention on CEO performance and a higher amount of CEO transitions.

* Executive compensation. The increased...