On the 2024 nom/gov committee agenda

In 2024, pressures on management and boards will increase significantly as companies contend with uncertainty and disruption as well as demands for increased transparency amid new regulations and heightened stakeholder expectations around climate change, cybersecurity, human capital management, artificial intelligence, and other issues. Boards will need agility and fortitude to rise to the challenge of effective oversight.

In light of this, nominating and governance (nom/gov) committees will want to reevaluate the appropriate director skill sets and committee structure to oversee the company’s strategy, risks, and opportunities as issues evolve and new opportunities and challenges arise. The committee will also need to work with board leadership to establish and maintain a culture where the ability to adapt and the robustness of disclosures are viewed as vital to effective governance in today’s high-speed world.

Drawing on insights from our latest surveys and interactions with directors and business leaders, we highlight seven issues to keep in mind as nom/gov committees consider and carry out their 2024 agendas:

• Lay the foundation to support agility in the board’s guidance and oversight.
• Revisit the board’s committee structure and workload distribution.
• Enhance the committee’s focus on board composition.
• Impose high standards for individual director effectiveness and education.
• Holistically reevaluate oversight of the company’s sustainability messaging.
• Set the tone for board and committee leaders.
• Sharpen communication to address investor needs.