Communicating in Disruptive Times: What Boards Needs to Know Now

Communicating in Disruptive Times

On January 22, 2025, Financial Profiles Founder and CEO, Moira Conlon, had the opportunity to participate in a panel discussion with the National Association of Corporate Directors (NACD’s) Pacific Southwest Chapter – Ask the Experts – Hot Topics in Corporate Governance where she discussed what directors need to know about communicating in disruptive times. In a world of constant change, board members should stay one step ahead of the communications game and leverage communications resources to mitigate risk and create sustainable value.

What Directors Should be Thinking About in 2025

CEO Turnover: CEO turnover in 2024 was at its highest level since 2010, with 327 CEO changes through November.

Investor Activism: There were 243 activist campaigns, the highest level since 2018, 27 of which resulted in CEO resignations.

Hostile Activism: Edelman just released the 2025 Trust Barometer that reported “Alarmingly – four in 10 respondents or 53 percent of those aged 18-34 – approve of one or more forms of hostile activism to bring about change, which includes attacking people online, intentionally spreading disinformation, threatening or committing violence, and damaging public or private property.”

Crisis Events: The fatal shooting of Brian Thompson, the CEO of UnitedHealth Group, resulted in unprecedented consumer outrage toward healthcare companies and executives.

Environmental Risks & Natural Capital: The California wildfires are putting a spotlight on the growing risk from widespread disasters to business operations and its impairment to natural capital. These risks will be on investors’ minds.

AI Opportunities & Challenges: Everyone is trying to get their arms around AI but there are currently more questions than answers.

Questions Board Members Should be Asking

Do you know who and what your communications resources are? Are they the right ones for the job in today’s ever-changing world?

Do we have a crisis communications plan in place? Does it provide a blueprint for any crisis? Does it consider the most common situations as well as the worst-case scenarios? How often is it updated?

How is your stock valued relative to peers and why? Do you know what investors and analysts think about your company – positive and negative? Are you getting the unbiased information you need? Have you invited your IR team or a savvy investor or analyst to a quarterly board meeting to talk about Wall Street’s perception of your company?

Is your board shareholder engagement program up to snuff? Are you benefitting from strong relationships and dialogue with the stewardship teams at your largest investors? Do you know how they are thinking about long-term risks and opportunities now? Will you have their support if you need it?

Do you have a policy in place for leadership to comment on social and political issues in the media?

Have you conducted a business and communications audit on how the new U.S. Administration policies may affect the company?

Do you have a formal AI policy, and does it consider the inadvertent disclosure of material non-public information?  

The Role of Proactive Communications

A proactive approach to communication has never been more important. The team at Financial Profiles has helped hundreds of executives and directors stay abreast of changing trends, prepare for unanticipated crisis situations and develop best-in-class communications to enhance their profiles. Reach out to learn more.