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Leadership

Report: CEOs Increasingly Under the Board’s Microscope

NACD’s survey found that technology concerns are top-of-mind for boards, who are paying more attention to the C-suite’s response.

Boards are engaged in more discussions around AI and cybersecurity—and keeping a closer eye on the chief executive, according to a new report.

The 2025 Public Company Board Practices and Oversight Survey, published last week by the National Association of Corporate Directors, is based on a survey of 201 public-company board members conducted between May 8 and June 2. Unsurprisingly given the rapid adoption of generative-AI tools, board engagement around AI has increased dramatically: According to the survey, 62 percent of directors say they make time to discuss AI with the full board, compared to only 28 percent in the 2023 survey.

Of chief concern for those board members is how AI will impact their company’s workforce needs, with 53 percent of respondents citing that as a main area of discussion. The same percentage are also discussing AI in the context of data governance practices. 

Similarly, boards are also more deeply engaged in cybersecurity discussions. Though the survey found that boards are generally confident in their companies’ cybersecurity responses, and fewer are looking for a cybersecurity expert to fill a board seat, large percentages want improved reporting on the subject, clearer roles, and more access to training and expertise. 

To that end, the NACD report suggests that boards may want to more fully integrate AI and cybersecurity discussions into their work. 

“As AI further embeds itself into corporate operations and strategy and it becomes a more significant strategic enabler and risk factor, boards will need to orient their processes, agendas, and continuing education toward maintaining consistent oversight of the technology,” the report says. “For example, boards could consider if and how committee charters should be revised to strengthen the board’s oversight by assigning responsibility for oversight of issues critical to AI’s success, like human capital, data governance, cybersecurity, and regulatory issues.” 

More than half of the survey respondents say their scrutiny of the CEO’s performance has increased in the past three years.

Those concerns, combined with ongoing anxieties around trade and the political landscape, may be why boards are paying closer attention to their CEOs. More than half of the survey respondents (54 percent) say their scrutiny of the CEO’s performance has increased in the past three years, with a particular focus on company performance, strategy development, talent stewardship, and risk management.

That said, respondents said the relationship between the CEO and board is generally strong, with more than half (56 percent) giving an “A” grade to their relationship. The relationship between the  board chair and CEO is even stronger, with 71 percent giving it an “A” grade. 

One potential weak spot: Only 40 percent gave high marks to the relationship between the board and staff leaders beside the CEO. 

In response to that issue, the report recommends that leaders do more to gather input about performance; only a quarter of boards, for instance, have engaged the C-suite beyond the CEO during evaluations.

“Boards and CEOs should approach their relationship with intention and continuous monitoring,” the report says. “Executive sessions and board evaluations can be leveraged to gather candid feedback and assess alignment.”

Mark Athitakis

By Mark Athitakis

Mark Athitakis, a contributing editor for Associations Now, has written on nonprofits, the arts, and leadership for a variety of publications. He is a coauthor of The Dumbest Moments in Business History and hopes you never qualify for the sequel. MORE

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