Our recent survey of company directors on NEDs shows that a majority (60%) of respondents feel Cyber and IT is seen as an area where their boards lack expertise. A significant proportion (34%) also felt the ESG was an area of lacking expertise.
Respondents also identified strengths, sector specific experience, accounting and governance knowledge were areas where NEDs were seen as having expertise in the view of a vast majority of small and mid-cap company directors.
It seems that emerging issues of environmental and social good practice that companies feel their boards are lacking in rather than governance in and of itself.
A majority of respondents (between 57% and 86%) reported seven of nine different categories as areas where their boards have expertise, showing that they believe their boards members are generally knowledgeable.
However, continued improvements in more objective recruitment processes that allow for more diverse candidates to be considered is likely to be the best way to close the current gaps in expertise.
Download the QCA NED Survey Report 2022 here..