The debate over how to improve corporate governance hasn’t included much about what directors themselves think. So McKinsey undertook a survey of nearly 200 directors who collectively sit on nearly 500 US boards and conducted interviews with 50 directors, governance experts, and investors. The companies span a wide range of industries, from high tech to manufacturing to services, and of sizes: a fifth had annual revenues or a market capitalization below $100 million, while two-thirds had $1 billion or more.
Reform might seem straightforward, but it’s very difficult to pull off. Our inside look at many of the most important governance issues shows why: for all the forces encouraging companies to rethink corporate governance, equally strong forces hold them back. The survey results that follow highlight the tensions inherent in reform.
The exhibits included in this survey are part of a larger
McKinsey Quarterly article entitled "
Change across the board," in which the authors offer a seven-part framework for tackling board governance reform and restoring investor confidence.
About the Authors
Bob Felton is a director in McKinsey’s Pacific Northwest office, and Mark Watson is a consultant in the New York office.
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