Thriving through volatility demands a robust leadership pipeline, an engaged workforce and practices that motivate employees to deliver on value creation. These five strategies are how high-performing boards make that happen.
With CEO tenures shrinking and exit strategies accelerating across industries, boards that are not prepared with a clearly defined and well-thought out strategy for succession will find themselves in the crosshairs. And that’s just one of many talent-related risks: AI is rewriting job descriptions faster than CHROs can post them. Workers are staying put not because they’re loyal and happy but because they’re afraid to make a move in a volatile climate. Compensation strategies built for stable markets are crumbling under the weight of trade wars and inflation spikes.
Directors are taking notice. In a recent survey conducted by Corporate Board Member, 69 percent of directors said they expect their board to spend more time on broader workforce issues. Meanwhile, in the 2025 What Directors Think survey, 30 percent of directors said they want more opportunities to hear directly from non-executive employees—and named the CHRO as the most valuable voice in the boardroom after the CEO and CFO.
More than a quarter of directors report that their comp committee’s responsibilities already extend beyond pay to include oversight of retention and turnover company-wide.
In interviews with more than a dozen leading advisors, governance experts and board veterans, one theme emerged clearly: Boards that fail to evolve on talent oversight will find themselves presiding over stagnant pipelines, disengaged employees and activist-attracting pay practices that no longer reflect reality. Following are strategies that can help address the most urgent talent issues facing boards in 2025.
1. Be sure compensation strategy reflects potential volatility—but don’t overreact.
When pay programs use the value of the stock to align performance with shareholder interests and then that stock tanks due to external factors—e.g., sweeping tariffs and market whiplash—boards worried about retention can be tempted to make changes.
Matt Turner, president of Pearl Meyer’s executive compensation consulting, says: “You want to have those [exceptions] as minimal as possible.” And in cases where adjustments are necessary, transparency is non-negotiable.
2. Dig deep to bolster the pipeline.
With CEO exits on the rise and volatility rewriting the playbook, boards can’t afford to focus only on the corner office, nor can they depend on a once-a-year slide deck review. They need to ensure the company a robust set of versatile leaders who will be ready when asked to step up when the unexpected hits.
Boards are also relying far more on past performance data when selecting candidates for CEO succession.
To cope with an increasingly volatile and unknowable future, savvy boards are zeroing in on agility as a key component.
Succession isn’t a fire drill—it’s a continuous muscle.
3. Insist on visibility into culture and workforce sentiment.
Boards that want a real picture of company health need to...