en
Login
Back to Global Corporate Governance Trends for 2025
Boards pivot to a strategic orientation
A central theme for Nordic boards is enhancing profitability by strengthening market positions. Across sectors, boards are tasked with steering companies away from market share battles and towards strategic positioning. This shift requires boards to act as strategic partners to management, providing guidance and insight to CEOs and C-suites, who often find themselves focused on day-to-day operational challenges. By focusing on strategic positioning, boards are increasingly reorienting to help think through sustainable, long-term growth.
However, shareholders (including family-owned business owners and activist investors) also play a more active role in strategic discussions with the common prevalence of dual-class voting structures. This trend is putting more pressure on board independence and challenging traditional governance practices, requiring boards to balance shareholder interests with their autonomy, all the while navigating complex relationships and staying true to their governance duty.
Heightened sustainability demand for impacted industries
ESG considerations have now become integral to board agendas. Initially driven by compliance, sustainability is now largely customer-driven. For instance, in industries like salmon aquaculture, international customers are increasingly demanding sustainable practices. This trend is underscored by EU regulations, such as the Corporate Sustainability Reporting Directive (CSRD), which impose significant costs and require that boards integrate sustainability into strategic planning and operations. Experts noted that ESG issues are also becoming part of audit committees' mandates, reshaping traditional governance structures and requiring boards to allocate more time and resources to these areas. Industries such as agriculture, logistics, and insurance – which face heightened risks and potential business disruption as severe weather incidents become more frequent – are increasingly adjusting their risk assessment and underwriting practices.
Staying on top of evolving technology
Cybersecurity continues to be a critical issue, given its potential to significantly disrupt business operations. Recent incidents involving some notable Nordic companies highlight the necessity for robust cybersecurity plans. Boards are keen to verify that management maintains control over cybersecurity threats, ensuring adequate measures are in place to protect company assets. Experts anticipate this area will demand ongoing attention and investment to safeguard against potential threats.
Regarding AI, boards are divided between early adopters and those at risk of being left behind. To leverage AI and keep up with its rapid advancements, boards can expect more education, as they must stay current on compliance and the strategic opportunities AI presents. This likely will entail regular training and workshops to help boards advise and steer the CEO and management effectively. Directors may be called to visit company sites more frequently and interact with employees to understand better AI's impact on operations and how it aligns with strategic goals.
Evolving board demographics but stagnant compensation
Board nomination committees focused on talent acquisition and diversity of thought are shifting from reactive to proactive by scouting and developing a pipeline of potential candidates who can bring fresh perspectives and skills. Across the Nordics, there is a call for board members under 50 who bring current knowledge, energy, and a fresh perspective to governance. Furthermore, in the digitalizing world, boards are increasingly seeking digital-savvy individuals with P&L experience who can navigate the complexities of modern business environments.
As the board’s remit steadily creeps forward, so too does the time commitment for Nordic board members, particularly during periods of strategic restructuring or acquisitions. Despite rising board demands, which continue to present challenges (especially for those with day-to-day roles), compensation remains relatively low compared to international standards, potentially hindering competitiveness and the ability to attract international talent.