WASHINGTON, Nov. 5, 2012 (GLOBE NEWSWIRE) -- Corporate directors remain uncertain about the future state of the economy, according to the National Association of Corporate Directors' (NACD) Board Confidence Index (BCI).
The boardroom's future outlook showed the most improvement. Nearly 58% of directors believe economic conditions will be either moderately or substantially better over the next year. Just under 25% show a pessimistic view, believing conditions will be moderately or substantially worse.
"The Q3 2012 NACD BCI results indicate that boardroom confidence is tied to several significant geopolitical and economic issues," said Ken Daly, president and CEO of NACD. "While corporate directors are focused on the performance of their own companies, they are well aware of their industry and the broader markets, as well as concerns expressed about Europe and the looming possibility of a year-end fiscal cliff."
Additionally, 54 percent of respondents are either "confident" or "very confident" their CEO will meet incentive plan performance objectives for the fiscal year. This is a slight decrease from 60 percent in Q2 and 62 percent in Q1.
"Heightened economic uncertainty does directors no favors as they begin to calibrate 2013 performance goals. We're seeing boards spend more time projecting potential incentive payouts under different scenarios to improve the alignment with performance across the spectrum," said David Swinford, president and CEO of Pearl Meyer & Partners.
NACD's Board Confidence Index (BCI) provides a snapshot of the state of the economy through the lens of the boardroom. During the month of September 2012, 130 public company directors responded to several questions regarding the state of the U.S. economy. To view the latest BCI data and methodology, please visit www.NACDonline.org/BCI.
For additional perspective on how the Q3 2012 BCI results will impact corporate pay practices, go to www.pearlmeyer.com/boardconfidenceindex.
About NACD
The National Association of Corporate Directors (NACD) is the only membership organization focused exclusively on advancing exemplary board leadership. Based on 35 years of experience, NACD identifies, interprets and provides insights and information that corporate board members rely upon to make sound strategic decisions, confidently confront complex business challenges and enhance shareowner value. With more than 13,000 corporate director members, NACD provides world-class director education, director training and proprietary research about leading boardroom and corporate governance practices to promote director professionalism and bolster investor confidence. Furthermore, to create more effective and efficient corporate boards, NACD provides independent board evaluations and custom-tailored in-boardroom education and training programs, as well as director-led conferences, forums and peer-exchange learning opportunities to share ideas about current and emerging issues. Fostering collaboration among directors and governance stakeholders, NACD is shaping the future of board leadership. To learn more about NACD, visit www.NACDonline.org. To join, please contact Kelly Dodd at kkdodd@nacdonline.org or 202-380-1891.
About Pearl Meyer & Partners
For more than 20 years, Pearl Meyer & Partners (www.pearlmeyer.com) has served as a trusted independent advisor to Boards and their senior management in the areas of compensation governance, strategy and program design. The firm provides comprehensive solutions to complex compensation challenges for companies ranging from the Fortune 500 to not-for-profits as well as emerging high-growth companies. These organizations rely on Pearl Meyer & Partners to develop programs that align rewards with long-term business goals to create value for all stakeholders: shareholders, executives, and employees. The firm maintains offices in New York, Atlanta, Boston, Charlotte, Chicago, Houston, Los Angeles, San Francisco and San Jose, as well as London.