As we move into the new year, the corporate landscape faces a unique set of challenges and opportunities. This dynamic environment necessitates a proactive and adaptable approach to corporate governance. Several key trends are emerging that will significantly impact how boards and management teams navigate the complexities of the modern business world.

Number one:

Capital availability from traditional banking sources has expanded to include abundant, flexible private equity sources.

Number two:

Large language models (e.g., Gen AI) have entered the board’s zeitgeist, and we are asking management to articulate their vision on its relevance and applicability.

Number three:

ESG and overly “woke” policies are being rebuked by some investors (see the 12/28 New York Post article on NASDAQ). But sustainability remains a corporate commitment.

Number four:

Digital currencies will come back into focus with the promise of regulatory clarity. Few will go to the extreme (MicroStrategy), but your treasury organization may want to investigate.

Number five:

Age policies remain a minority practice. Of the companies that publish their retirement policy, age 75 is increasingly the age shared per the Harvard Review.

Number six:

Activism continues and the majority of boards are savvy enough to now recognize they will need to compromise: see the Elliott/Southwest Airlines, and even more recent agreement of Honeywell to split into two separate companies, aviation and industrial.

Number seven:

United Health Group has alerted boards to their CEOs’ vulnerability and the need to consider physical security as well as cybersecurity

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