Three Topics on U.S. Board Directors’ Minds in 2025

A recent meeting we hosted with public company board members in Park City, Utah, offered an interesting glimpse at what’s on board directors’ minds in 2025. One message was clear throughout: CEOs and boards face more uncertainty than nearly anyone can remember. From geopolitics to AI, C-suites and boards are navigating a high level of short-term uncertainty while also trying to keep an eye on medium- and longer-term goals.

Below we look at three key boardroom themes that stood out during our conversation.

Managing risk and volatility

A more volatile landscape requires different skills and mindsets from CEOs and C-suites. The board can be a useful partner by offering the collective experience and insights to help the organization prepare for uncertainty — and ensuring that the right leaders are in place to carry the company forward. For example, Spencer Stuart’s Measure of Leadership survey of more than 2,000 CEOs and board directors found that amid uncertainty, leaders are prioritizing issues within their control: for example, company culture, changing workforce dynamics and access to talent.

While boards often “outsource” risk to the audit committee, our discussion touched on how some boards are taking a more active, collective role in how they address risk. First of all many boards are looking both at the positive and negative aspects of risk. They are also embracing new approaches such as deeper and more agile scenario planning to one helpful — and maybe necessary — approach to managing risk, especially as organizations seek to address issues such as the impact of new economic policies, new talent trends, regulatory changes, the threat of activist investors and the impact of AI just to highlight a few.

Reviewing board refreshment philosophies

Board refreshment is a long-standing challenge for boards. How do you balance the need for experience on your board with adding new directors who can offer a fresh perspective? Spencer Stuart research has shown that boards regularly employ tools like assessments, skills matrices and committee evaluations for succession planning. However, other practices such as individual director assessments, tenure limits, voluntary retirement, or the requested retirement or resignation of underperforming directors can also support overall board refreshment to meet the evolving needs of the organization and its stakeholders.

That said, the discussion participants in Park City felt that more thoughtful approaches to board refreshment were needed; we heard the word “courage” several times in regards to board refreshment. As noted in the most recent U.S. Spencer Stuart Board Index, a courageous approach to refreshment is needed to help keep a board aligned with the evolving needs of the company and equipped with the foresight to see knowledge gaps; they will need a strong determination to conduct and act on director evaluations, and the courage to make difficult decisions, such as asking directors to step down when necessary.

Balancing in-office and virtual

More than five years since the dawn of COVID-19, boards and leadership teams are still managing the balance between maintaining an in-office employee presence and the convenience and flexibility of virtual work. While the pendulum has swung toward returning to the office, many companies also recognize the benefit of virtual teams that enable them access to the best talent without geographical barriers.

While many companies are implementing consistent, organization-wide approaches (e.g., everyone comes in the office three days a week), one company represented in our discussion gives senior managers discretion to implement in-office work as they see fit. As boards advise on continued back-to-office discussions, some key questions are worth considering. How might various work arrangements impact company culture? How do boards ensure that office policies align with the organization’s long-term strategic objectives?

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The conversation in Park City highlighted the evolving landscape of board governance, and the need for adaptability to address today’s challenges. As boards navigate today’s volatility, they will need to be ready to make bold moves to ensure that they are equipped to help guide their companies through uncertainty and position their organizations for long-term success.