Boardroom Bellwether 2024 published

Thursday 19th September 2024

A survey of FTSE 350 companies published today has found that British boards are sceptical about stock exchange recovery and cautious about prospects for the global economy. Boards continue to focus on mitigating cyber risks according to the report published by The Chartered Governance Institute UK & Ireland

The Boardroom Bellwether is an annual survey by The Chartered Governance Institute UK & Ireland which surveys business sentiment inside British boardrooms. 2024 is its twelfth year of publication.  It canvassed the views of FTSE 100 and FTSE 250 company secretaries to find out how boards are responding to the challenges of the economy, market conditions and the wider business and governance environment. 

The full report can be downloaded here.

Headlines:

  • Boards sceptical about stock exchange recovery.
  • Cyber risks continue to dominate boardroom discussions.
  • Mood on the global economy remains cautious.
  • UK competitiveness remains an concern.

Questions covered a range of business concerns, topical issues and specific governance matters to provide unique insight into what British boards are thinking. Some questions change from survey to survey, but the core remains the same, to reveal trends and shifts in opinion.

Overview of survey results:

 “Business leaders optimistic about UK economy, less so about world economy”

  • 14% of companies expect UK economic conditions to deteriorate over next 12 months  (vs 53% expect improvement)
  •  22% of companies expect world economic conditions to deteriorate over next 12 months (vs 44% expect improvement)
  • 25% of businesses expect UK to become less competitive over the next five years  (vs 47% expect improvement)

“and less optimistic about the stock exchange”

  • 53% of business leaders expect the city of London to continue to experience net de-listings over the next five years  (vs 31% who expect delistings to end)
    • “The new government need to prioritise making UK listed companies attractive to investors in comparison to overseas listings”

“Cyber risk continues to be the fastest growing risk face by businesses”

  • 57% of execs say overall risk is increasing
  • 74% of execs cyber risk to increase
  • 80% of organisations are increasing spending on cyber risk mitigation
  • 79% of companies say that directors face increasing risk/liability

“Business leaders express concerns about the volume of regulation that companies now have to comply with”

  • 44% of business leaders say that UK businesses are over-regulated (vs 3% under-regulated)
    • “The cumulative and practical effect of new regulations must be carefully considered, as we have seen that taken together they can be a brake on growth and decision-making”
    • “The UK suffers from gold plated regulation and regulators who don’t seem to consider the need for the UK to be a competitive place to do business”

“Stewardship code has been at best a limited success”

  • 53% of business leaders say that the Stewardship Code has had no impact on the way that investors engage with them (vs 33% has had a positive effect)

“Many companies face problems finding directors with the right skills”

  • · 53% of businesses consider that the restrictions and the media scrutiny over executive pay is detrimental to hiring the right candidates. This rises to 65% for FTSE 100
  • · 35% of companies are struggling to recruit board members with the right skills

- ENDS - 

Notes

  1. 1.      The Chartered Governance Institute UK & Ireland is the professional body for governance and the qualifying and membership body for governance professionals across all sectors. Its purpose under Royal Charter is to lead ‘effective governance and efficient administration of commerce, industry and public affairs’ working with regulators and policy makers to champion high standards of governance and providing qualifications, training and guidance. As a lifelong learning partner, the Institute helps governance professionals to achieve their professional goals, providing recognition, community and the voice of its membership.
    One of nine divisions of the global Chartered Governance Institute, which was established 130 years ago, The Chartered Governance Institute UK & Ireland represents members working and studying in the UK and Ireland and in many other countries and regions including the Caribbean, parts of Africa and the Middle East.
    Website: www.cgi.org.uk 
  1. The survey was conducted in late summer 2024 and responses were gathered from 72 FTSE350 companies (42 from FTSE100 and 30 from FTSE250)

Enquiries

For all press enquiries, please contact:
Daniel Valentine, Head of Communications, The Chartered Governance Institute UK & Ireland on
dvalentine@cgi.org.uk

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