Private company outlook: Corporate governance
Why governance remains an important focus for private enterprises
Our latest survey reveals significant shifts in governance strategies within private companies. Executives plan to use emerging tech competencies to strengthen their boards, are concerned with climate change more than they are market competition, and categorize strategic risk as the primary focus for boards of directors. Why are these corporate governance insights important to consider? Even though private company shares aren’t in public hands, leadership teams and boards are still accountable for making smart decisions—decisions that can impact their workforces, partners, suppliers, customers, the environment, and other stakeholders.
In this edition of Deloitte’s Private Company Outlook, we examine how 100 private company leaders plan to approach corporate governance issues in the next 12 months. Survey respondents represent the C-level, presidents, board members, partners, and owners, and all sit within private companies in the US with annual revenues of $100 million to over $1 billion. Their perspectives provide a unique lens on how business priorities, board governance, AI, and business risks will impact certain decisions through the end of the year and moving into 2025. See key findings below or download the full report to learn more.
Governance takeaways
AI use is the #1 leadership priority
Increasing AI use across the organization (43%) and investments in technology (37%) are top leadership priorities for the near future. Talent (51%), digital transformation (46%), and emerging tech/AI (44%) all emerge as relevant topics for quarterly board meeting agendas.
Emerging tech/AI is the leading competency to strengthen private company boards
Nearly 8 in 10 respondents (79%) say their organizations are either actively using GenAI or are beginning to pilot it. They also agreed that emerging technology/AI (43%) is the most important competency to strengthen their organization’s board.
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Private company boards, like the organizations they oversee, have a growing list of priorities and demands on their time. Traditional pressures like strategic, reputational, and competitive risks persist, while organizations seek more attention on areas like talent. Expanding the experience and knowledge of board members is one step, but dialogue about board capacity and priorities can improve governance on external and enterprise risks today while preparing organizations for transformational changes in the future.
– Wolfe Tone, vice chair, and U.S. Deloitte Private leader
Wolfe Tone
