Independent Chairman of the Board of Directors, Chairman of the Audit committee, KOKS Group
The results of the 2013 survey highlight some interesting changes in the top priority issues to which Russian directors would like to give more time and attention. This year, strategic planning and succession planning have been attracting greater attention. Risk management also remains a key issue. However, executive compensation is not the hot topic it was in 2012.
In February-March 2013, PwC Russia conducted its second annual boards survey to analyse trends and priorities in the activities of boards of directors at Russian companies.
Our respondents represent companies with a wide range of activities and shareholding structures, most of them generate annual revenues of over USD 1 billion. 73% of our respondents are board members of at least one public company.
This year, strategic planning and succession planning have been attracting greater attention. Strategic planning is at the top of the priority list: 87% of respondents say they would like their boards to give this issue more attention (versus 52% in 2012), with 39% believing the issue requires much more time and focus. Only 13% believe that this issue is already a major focus.
Succession planning was the second most popular choice: the number of directors who want more time and focus devoted to this issue has doubled since 2012 to 70%, with only 9% believing the issue has already been given a lot of attention.
Risk management remains a key issue. However, executive compensation is not the hot topic it was in 2012.
Boards have clearly made progress in improving their practices as compared to the results of the previous year. Directors are somewhat more satisfied with their boards’ effectiveness as compared to the previous year as well. Just like a year ago, directors believe that boards are at their most efficient when monitoring accurate financial reporting through audit committees, as well as in their ability to stand up and challenge management when appropriate.
You are welcome to look at the survey results in more detail.