Takeaways from the the latest Board Monitor Europe 2024 report, published by Heidrick & Struggles
The latest Board Monitor Europe 2024 report, published by Heidrick & Struggles, highlights the evolving roles of boards and executive teams in European companies, with a notable increase in their operational involvement. The report reveals that regulatory bodies, consumers, and a broader workforce are exerting greater influence on company agendas, shaping the direction of many businesses across the continent.
Among the key findings, 71% of surveyed CEOs and directors from European firms report increased operational engagement from their boards. As companies face rising challenges in the post-pandemic era, leaders are showing more openness to bringing in external experts, particularly in risk management. In Poland, however, the representation of women in newly appointed board positions remains the lowest in Europe, at just 36%.
Shifts in boardroom dynamics
Heidrick & Struggles, a global leader in leadership advisory and executive search services, has been studying trends that shape governance across the world’s largest publicly traded companies for over 70 years. The Board Monitor Europe 2024 report tracks significant changes in boardroom dynamics, with insights from 14 markets, including Poland. This year’s findings reflect a major shift in how boards and executive teams are approaching operational responsibilities and risk management.
In particular, regulatory bodies (52%) and consumers (43%) are having the most significant impact on company agendas, followed closely by the workforce (43%). The report notes that, compared to other global regions, European boards are becoming more focused on integrating external expertise, especially in areas like risk management and cybersecurity. In fact, 33% of respondents expressed a willingness to consult external experts, while another 22% favored adding board members with specialized knowledge in the risks their firms face.
“The global business landscape is changing rapidly due to post-pandemic conditions, geopolitical uncertainties, and emerging technologies,” says Łukasz Kiniewicz, Managing Partner of Heidrick & Struggles Poland. “Boards are increasingly engaging in operational matters and seeking outside expertise to navigate these complexities.”
Operational involvement and leadership challenges
The report also highlights the growing operational involvement of boards and executive teams, with 71% of European CEOs and directors noting a more hands-on approach. Of these, 25% said this occurs frequently, while 46% reported occasional involvement. The main reasons for this shift include the desire to gain deeper insights into company operations and the need for specialized knowledge that the executive team may lack.
Technology and innovation continue to dominate boardroom discussions, with AI, cybersecurity, geopolitical volatility, and sustainability listed as key areas of concern. Despite the evolving landscape, traditional responsibilities like financial performance, strategy reviews, and succession planning still occupy nearly 60% of board meeting agendas.
Diversity gaps in Poland
One of the more concerning findings of the report is the lack of gender diversity in Polish boardrooms. Despite European Union directives aimed at achieving gender balance on boards, Poland lags behind, with only 36% of newly appointed board members being women in 2023. This is the lowest figure among the European markets studied, with Ireland leading at 61%.
The average age of newly appointed board members in Poland is 50, making it the youngest in Europe, while Switzerland has the oldest average at 61.
Employee engagement and evolving expectations
The report also delves into how boards and CEOs engage with employees. In Europe, 84% of respondents believe senior management should collaborate more closely with higher-level employees, suggesting methods such as occasional meetings without management (39%) or third-party surveys (36%).
As societal pressures on leadership grow, 71% of respondents highlighted the need to redefine the roles and responsibilities of board members. With an increasing focus on risk management and strategic oversight, directors are now more involved in day-to-day operations than ever before.
Looking ahead
The Board Monitor Europe 2024 report underscores the growing complexity of governance in an ever-changing business environment. As external forces like regulatory pressures, technological advancements, and geopolitical uncertainties reshape the corporate landscape, boards and executive teams are adapting to play a more active role in company operations.
