The roadblocks to renewal are not just skill gaps; they are cultural barriers:
The Collegiality Trap: Discomfort with hard conversations and prioritizing politeness over performance.
Broken Feedback: Most boards skip individual performance reviews, stalling accountability.
You cannot achieve peak performance in a Survival State where candor is punished. Trust must be built to allow for the candid feedback that drives innovation and excellence.
Boards that succeed will move beyond politeness to choose clarity and action. We must build an environment where honest feedback is seen as an asset, not an attack.
To lead with confidence: Candor Over Collegiality. Renewal Is Not Optional.
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Board underperformance is at a breaking point: Insights from PwC’s 2025 Annual Corporate Directors Survey
With record numbers calling for change, directors say boards must overcome cultural barriers and take action to meet today’s business challenges.
PwC’s Annual Corporate Directors Survey point to a clear reality: directors themselves are saying that underperformance in the boardroom can no longer be ignored.
Over half (55%) of directors reported that at least one of their colleagues should be replaced—the highest level in the survey’s history. And the reasons are telling: lack of meaningful contribution to discussions, long tenure and insufficient expertise. At the same time, cultural barriers like collegiality and discomfort with hard conversations continue to prevent boards from acting.
So, what’s really holding boards back? This year’s results reveal three critical problems.
#1: Feedback loops are broken
Assessments should provide directors with a complete and honest view of board performance. Instead, most directors say the process falls short: 78% reported that assessments don’t capture the full picture, and nearly three-quarters say their boards skip individual reviews altogether. Without real feedback, it’s hard to hold peers accountable or build momentum for change.
#2: Skills aren’t keeping pace with business needs
Only 32% of executives believe their boards have the right skills mix. Boards continue to focus on adding industry and financial expertise, while executives are asking for more global, sustainability and risk oversight experience. The mismatch may leave some boards out of step with today’s business realities.
#3: Refreshment remains too reactive
Boards acknowledge the need for renewal, but long tenure continues to stall refreshment. A third of directors say long-serving members contribute to underperformance, and nearly one in five say their boards wait until retirement age rather than acting sooner.
Reasons for optimism
The good news is that directors also see ways forward. Eighty-eight percent say they can take personal steps to improve effectiveness, from seeking training to encouraging diverse viewpoints. Boards that bring in external facilitators report stronger assessment outcomes, and practices like linking evaluations to succession planning are beginning to take root.
We also heard from directors that building trust and a supportive environment can open space for candid conversations—an important foundation for accountability and performance.
Why it matters now
The 2025 survey makes one thing clear: board underperformance is no longer just an internal frustration; it’s a governance issue that can shape how companies respond to risk, opportunity and stakeholder expectations. Directors are calling for accountability, renewal and a sharper focus on skills that match the moment.
The opportunity ahead is to turn recognition into action and to strengthen board effectiveness in ways that help organizations lead with confidence.
Explore the full 2025 Annual Corporate Directors Survey here.
About PwC
At PwC, we help clients build trust and reinvent so they can turn complexity into competitive advantage. We’re a tech-forward, people-empowered network with more than 370,000 people in 149 countries. Across audit and assurance, tax and legal, deals and consulting we help clients build, accelerate and sustain momentum. Find out more at www.pwc.com.
SOURCE – PwC
