Board oversight and the executive evolution
How boards can adapt to new C-suite roles
The Governance Lens series offers boards timely overviews and practical recommendations on issues shaping the current business landscape.
One of the board’s many responsibilities is overseeing the CEO. To do that effectively, it can be helpful to understand and monitor C-suite dynamics. Keeping a pulse on the company’s C-suite roles, however, can be an increasingly complex affair.
Deloitte’s analysis of more than 46,000 C-suite job postings by Fortune 500 companies shows that from 2018 to 2023, top leadership teams expanded by an average of 23%, from 6.7 titles to 8.2. With more executives on the leadership team bringing a new mix of skills to the C-suite, the board’s focus on role clarity and decision-making structures grows. Greater headcount and evolving mandates can lead to overlapping responsibilities and other inefficiencies, while gaps in accountability may expose the organization to risks.
A decentralized executive structure with more leaders executing on expanding mandates could signal a need for more coordination from the CEO. Managing the growth agenda and harnessing resources to capitalize on market and customer trends could become more complex. Even managing regulation and compliance may be more complicated with shifting leadership roles as the regulatory environment evolves.
Emerging roles in Fortune 500 C-suites
Questions for oversight of a more agile, effective C-suite:
1. Is there clarity in executive roles? How do C-suite roles align with the organization’s strategy and growth objectives? Are there gaps that could lead to questions about accountability or elevate risk in specific areas?
2. How do new executive roles interface with board and committee leadership? How do C-suite roles align with the organization’s strategy and growth objectives? Are there gaps that could lead to questions about accountability or elevate risk in specific areas?
3. Are executives equipped to manage their expanding responsibilities? As roles evolve, are C-suite leaders receiving sufficient leadership development or training to meet the company’s goals?
By thinking about these questions, boards can strengthen their oversight approach and help cultivate a more agile and effective executive team.
