2025 Board Agenda: What are the Key Priorities for Board Directors?

An end-of-year survey by the National Association of Corporate Directors (NACD) revealed 48% of board directors perceive crisis-like disruptions as more frequent compared to five years ago. Over half also noted an increase in their severity.

The findings highlight the complex challenges boards face in 2025. From our conversations with boards globally, it is clear the growing complexity requires proactive governance, strategic foresight, and the right leadership talent. 
Here’s a look at the key priorities for boards in 2025 and how they are addressing them.

1. AI Integration

The adoption of AI technologies presents both opportunities and challenges. Implementation stages vary based on a company's technological maturity and business model relevance. 
Key challenges include balancing investment costs against anticipated returns and managing workforce impacts. Overcoming these hurdles often requires trial and error and collaboration with external experts. 

Increasingly, this requires the appointment of an AI executive, either as part of a technology function, or as a member of the board. 

2. Securing Inward Investment

Attracting foreign investment remains a significant concern, particularly in the UK, where political uncertainties and increased regulations pose challenges. 
The need to foster an environment that instils confidence in global investors is critical, and boards are trying to develop stable and transparent policies to enhance the investment climate.

Leadership plays a pivotal role in this context. The right leader can possess the foresight to position the company as a pioneer in emerging markets while also identifying and fostering strategic partnerships to significantly enhance its attractiveness to investors.

3. Addressing Emerging Risks and Global Instability

Remaining vigilant in identifying and mitigating risks arising from geopolitical tensions, economic shifts, and global disruptions is a key concern in the boardroom. 

Assessing and building organisational resilience in preparation for these risks and opportunities is increasingly common, as it can also drive collaboration, productivity, and improve employee retention. 

4. Navigating De-globalisation and Protectionism

The trend towards de-globalisation and national protectionism limits global expansion opportunities, compelling companies to focus on local markets. 

This is a particular challenge for UK businesses where the reduced ease of trade with Europe exacerbates these challenges. Boards are developing strategies to operate effectively in a more inward-looking world, considering alternative markets and local partnerships.

5. Commitment to Sustainability

Delivering sustainable business practices is an imperative for leaders, yet some investors hesitate to bear the associated costs. 

This alignment ensures long-term value creation while meeting environmental and social responsibilities. The appointment of a commercially astute Chief Sustainability Officer can achieve this balance between profit and plant.  

6. Bridging Leadership Skills Gaps

The changing business landscape demands new knowledge and skills in areas such as cybersecurity, AI, climate change, and trade policies. 

In 2025, we’ll see more boards reimagine traditional oversight paradigms. This is likely to mean incorporating advisory board members, implementing shorter or part-time rotational terms, and investing in education to address these gaps without creating unwieldy board structures.

7. Enhancing Board Effectiveness

With governance practices under scrutiny, boards are reassessing their objectives and oversight responsibilities. Effective governance starts with a well-composed board reflecting diverse experiences, skills, and opinions. 

This year, boards will spend more time on regular evaluations and strategic succession planning to maintain alignment with the company's evolving needs. 

8. Finding the Best Talent

Nearly 40% of NACD board directors highlighted the competition for leadership talent as a critical issue. 

AI and digital transformation requires leaders with the combination of specialised skills and strategic acumen. The globalisation of talent markets means boards are not only competing locally but also internationally for the best candidates. Changing workplace expectations demand boards offer competitive compensation alongside a strong culture and flexibility. 

As a result, boards are placing more importance on succession planning to build a pipeline of prepared leaders, whose personal goals align with the organisation’s. This ensures stability, minimises disruption, and provides a long-term competitive edge. 

At Odgers Berndtson, we assist boards in identifying and securing the right leaders to tackle these challenges. Whether through external executive searches or by fostering a robust pipeline of talent through succession planning, we ensure boards are equipped to confidently face any obstacles that come their way.

_____________________________________________________

Get in touch. Follow the links below to discover more, or contact our dedicated leadership experts from your local Odgers Berndtson office to discuss your CAIO requirements.