In its most recent survey of public company board directors published just last month, PwC found over 48% of respondents indicated that there’s at least one other board director who they think should resign their board position. 19% indicate that they think two or more fellow board members should resign. And these numbers are up dramatically from earlier surveys.
These numbers reflect the new economy and the new challenges to public company board members. These challenges include:
- Stock Price Challenges Dramatic reductions in public company stock prices. The Nasdaq has lost almost 40% since January of this year.
- Revenue Challenges Many customers are withdrawing orders and reducing spending.
- Leadership Challenges In Silicon Valley, the average tenure for public company CEOs is over 11 years. CEO replacements are on the table.
- People Challenges 98% of Silicon Valley CEOs have either done a layoff or are contemplating layoffs this year.
Fact is that public board service will become more demanding as the economy goes through a reset. Board members who were successful team mates in good times may not have the skills required to sustain and build a company in a recession. It’s something that your own board members can see.
Is it time to refresh your Silicon Valley Board?
Read the PwC’s 2022 Annual Corporate Directors Survey for more insight