How Board Director Accountability Is Reshaping Corporate Governance in 2025

We are seeing frustration in the boardroom mounting, and directors are beginning to speak up. According to PwC’s 2025 Annual Corporate Directors Survey, 55% of public company directors believe at least one of their board colleagues should be replaced, a record high and a six-point increase from the year prior. 

The message is clear: expectations are rising, and tolerance for underperformance is waning. 

This shift reflects a deeper understanding of what boards need in today’s dynamic environment. Directors are no longer measured solely by their credentials or tenure, they need to contribute meaningfully to discussions, challenge assumptions, and help steer the organisation through complex strategic terrain.

The Anatomy of Underperformance

When directors say a peer isn’t pulling their weight, it’s rarely about attendance.

The top concern cited is a lack of meaningful contribution to board discussions.

This points to broader issues around engagement, alignment, and boardroom dynamics.

Results from the survey highlighted that:

• 41% say underperforming directors fail to contribute meaningfully to discussion 
• 34% cite long tenure as a factor, suggesting that some directors may become less engaged or fall behind evolving governance expectations.
• 21% highlight a lack of relevant expertise for today’s board roles, especially as companies face new strategic priorities like digital transformation, climate risk, and stakeholder activism.

Performance also hinges on interpersonal dynamics. In boards where a few strong personalities dominate, quieter or less tenured directors may feel discouraged from speaking up. Even highly qualified members can appear disengaged if they routinely defer to others or hold back their insights.

When Collegiality Becomes a Barrier 

Despite growing consensus on the need for board refreshment, many boards hesitate to act.

The desire to maintain harmony, cited by 25% of directors, often overrides the need for tough conversations.

Practical barriers also play a role. 21% say the process of replacing a peer is too awkward or time-consuming, while 19% admit their board simply waits out a member’s term. 

This reluctance creates a paradox. Underperformance is acknowledged, but rarely addressed. And while civility is essential to effective governance, it shouldn’t come at the cost of progress.

 

 

 

Directors are Ready to Lead Change

Encouragingly, directors are self-aware. A full 88% say they can take steps to improve board effectiveness.

Their responses fall into two complementary categories.

• Expanding expertise: 45% prioritise additional education or training to stay aligned with evolving board responsibilities. 
• Strengthening boardroom culture: Directors are also focused on improving relationships (33%), encouraging diverse viewpoints (25%), and speaking up more often (24%).

 

This signals a readiness to evolve, not just individually, but collectively. Boards that embrace this mindset are better positioned to respond to risk with agility, align skills with strategy, and model the behaviour they expect from management.

 

Tips for Directors Looking to Elevate Board Performance 

As board expectations rise, directors have a unique opportunity to lead by example. Whether you’re a seasoned chair, or a newly appointed member, here are five practical ways to strengthen your contribution and support a high-performing board culture.

5 tips for directors to elevate board performance

1. Prepare with purpose

Go beyond reading the board pack, reflect on strategic implications, formulate questions, and identify areas where your expertise can add value. Preparation signals commitment and drives meaningful discussions.

2. Speak up, even when it’s uncomfortable

Constructive challenge is essential to good governance. If you have a concern, insight, or alternative view, share it. Boards thrive when diverse perspectives are voiced and explored.

3. Build relationships outside the boardroom

Strong interpersonal dynamics lead to better collaboration. Take time to connect with fellow directors between meetings, it fosters trust and makes difficult conversations easier to navigate.

4. Stay current on emerging issues

Governance is evolving fast. Make time for ongoing education on topics like ESG, cybersecurity, AI, and stakeholder engagement. Directors who stay informed are better equipped to guide strategy. 

5. Use technology to stay organised and engaged

Leverage board management platforms like StellarBoard to centralise your materials, track actions, and access governance data in real time. When directors have the right tools, they can focus on what matters most – strategic oversight.

Improving your own contribution sets the tone for the board as a whole, driving stronger engagement, better decisions, and shared success.

How StellarBoard Supports High-Performance Boards

As expectations rise, boards need tools that support transparency, accountability, and engagement. StellarBoard helps directors stay aligned, organised, and empowered to contribute meaningfully.

Our platform provides:

• A centralised portal for board activity, from agendas and minutes to votes and decisions
• Secure, audit-ready documentation that builds trust and supports compliance
• A commitment to continuous improvement, with regular feature updates designed to make board management easier for directors and admin teams

Whether your board is navigating change, refreshing its composition, or strengthening its culture, StellarBoard provides the infrastructure to support high performance.

Learn more at www.stellarboard.com

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