Are You the One? Half of Directors Think a Colleague Should be Replaced

Fifty-five percent of directors think someone on their board should be replaced, up from 49 percent who wanted a fellow board member to depart in 2024.  That is one of the key findings of PwC’s 2025 Annual Corporate Directors Survey, Driving a culture of accountability in the boardroom. 

PwC surveyed 638 directors. Seventy percent of the companies these directors represent have annual revenue of over $1 billion. Sixty-five percent of the respondents were men, and 32 percent were women. Fifty-six percent of respondents have served on their board for more than five years.

Top reasons for wanting a colleague replaced were “Does not contribute meaningfully to discussions” (41 percent), “Long tenure has led to diminished performance” (34 percent), “Lacks the necessary expertise for the role” (21 percent), and “Interaction style negatively impacts board dynamics (e.g., culture/fit)” (20 percent).

Despite these views, many directors also reported that their board had not taken action to replace underperforming members. The chief reasons for inaction were “Collegiality/personal relationships between board members” (25 percent), “Replacing a director can be awkward/time-consuming” (21 percent), and “Director in question is close to mandatory retirement age” (19 percent).

While they may have personally concluded that another director should be replaced, directors do not have much faith in their board’s performance assessment process.  Seventy-eight percent do not believe the assessment process provides a complete picture of overall board performance, and 51 percent said their boards are not sufficiently invested in the assessment process.

The great majority (88 percent) of directors surveyed believe that specific actions short of replacing a director could improve board effectiveness.  These included:

• Seek additional education or training on key topics (45 percent).

• Strengthen relationships with fellow board members (33 percent).

• Encourage more diverse viewpoints or innovation (25 percent).

• Be more willing to speak up during discussions (24 percent).

Other key findings of PwC’s survey were:

• Board appointments largely focus on traditional areas of expertise. The top skills/traits that boards seek when adding new directors are industry knowledge (34 percent), financial acumen (27 percent), and operational experience (22 percent). This emphasis on traditional director characteristics contrasts with the fact that only 32 percent of executives believe their board has the right expertise.

• Only 35 percent of directors said that their board has incorporated AI into its oversight.

PwC’s survey report ends with a roadmap outlining steps “to cultivate a board culture defined by shared ownership and responsibility.”  These steps are divided into four categories – actions that can be taken by the individual director, board leadership, the full board, and the executive team.