CCI staff share recent surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.
95% of directors’ views on business outlook affected by election
More than eight in 10 corporate directors are now forecasting increased company revenue in 2025 after the surprising presidential election victory of Donald Trump, up from 74% in Q3 before the November election, according to Diligent’s latest board confidence survey.
Diligent’s survey also found that 54% of board directors expect economic conditions to improve over the next year, up from 42% in Q3, and when asked to explain their outlook, 95% said it had been influenced, both for good or bad, by the outcome of the election.
Those anticipating a positive effect on the business climate under the incoming Trump Administration cited easing regulations and tax cuts, while those who predict a negative effect cited trade tariffs and general instability as the biggest drivers of their views. Indeed, many directors seemed to settle in the middle, believing gains in some areas may be met by losses in others.
“Soft landing seems to have been accomplished. Post election, I anticipate less regulatory scrutiny will improve the economy, but this will be offset by the impact of tariffs and inflation,” said a director on the board of a REIT, echoing several others who mentioned concerns over tariffs.
In a separate Diligent study on executive compensation, investor support for “say on pay” proposals reached 91.5% at major U.S. companies, even as CEO pay hit record levels. S&P 500 CEO median pay rose 8.9% to $15.9 million in 2023, while Russell 3000 CEOs saw an 8.8% increase to $6.6 million.
Finance sector makes uneven progress on climate risk governance
Only 14% of financial sector board members rank climate risk as a high priority among their challenges, even as 41% of institutions have established dedicated climate risk committees, according to new research from water risk intelligence firm Fathom and fund management researcher IFI Global.
The study, which analyzed 92 corporate reports and included interviews with 42 senior leaders, found that while 72% of investment management firms describe climate risk as central to their operations, most boards lack dedicated oversight, and only 14% ranked climate risk as “high” alongside other risks boards need to address.
Banks lead in committee formation at 65%, compared to roughly 30% for insurers and investment firms.
“Climate risk today demands a new level of strategic oversight, reshaping the way boards view and respond to emerging threats,” said Karena Vaughan, chief sales officer at Fathom.
- 62% believe independent oversight on climate risk is important.
- 45% expect greater focus on climate risk in the future.
- Banks trail other sectors in climate risk prioritization, with only 50% describing it as a central risk factor compared to 70% of insurers.
Noncompliance risks rise as regulatory complexity grows
More than a third of organizations risk missing regulatory requirements as compliance demands intensify, with 42% of regulatory affairs professionals admitting to past oversights, according to new research from RegASK, a regulatory intelligence firm.
The company’s report found that 62% of professionals faced increased regulations over the past year, with missed requirements leading to delayed product launches (49%), reputational damage (40%) and slowed innovation (32%). The study surveyed 145 regulatory professionals, senior leaders and C-suite executives worldwide.
“The business impact of noncompliance is simply too high to ignore. One missed regulatory requirement can easily bring business-critical initiatives to a halt and lead to hefty fines and reputational consequences,” said Caroline Shleifer, CEO of RegASK.
Other key findings include:
- Only 63% of senior regulatory affairs leaders trust their organization to be fully compliant.
- 39% of regulatory professionals currently use AI tools, with 68% planning to expand usage.
- Senior executives expect new regulations in 2025 related to ingredient bans (46%), AI (43%) and ESG (30%).
