Closing the Confidence Gap: Why the Board-CEO Relationship Needs a Reset
Spencer Stuart
The August, 2025 edition of The Hub is highlighting a report from Spencer Stuart which uncovers a growing disconnect between CEOs and their boards, especially around the type and quality of support CEOs receive in an increasingly complex business environment. Surveying 2,400 CEOs and board directors globally, the findings reveal that fewer than 25% of CEOs believe their boards provide effective support for navigating rapid change—despite most directors thinking they already do.
This confidence gap reflects a misalignment in expectations. While CEOs want their boards to act as strategic thought partners and offer deeper, context-specific expertise, boards tend to overestimate their own contributions. For instance, 60% of CEOs desire more engagement and thought partnership, yet only 41% feel they receive it—while 61% of directors believe they already provide it. Similarly, 53% of CEOs seek subject matter expertise, but only 43% believe their boards deliver, compared to 63% of directors who say they do.
The study identifies three primary areas where CEOs seek enhanced support:
- Personal and Strategic Engagement – CEOs want emotionally intelligent backing and the ability to be vulnerable with the board, especially during turbulent times.
- Expertise in Organizational Challenges – Boards should offer deeper insights, particularly in areas like AI, cybersecurity, and regulatory matters.
- Time for Strategic Dialogue – Many CEOs and directors agree that board agendas need to prioritize future-oriented, strategic discussions.
Data from the report confirms that effective board support directly correlates with improved company performance, goal attainment, and CEO satisfaction. CEOs who feel supported are far more likely to report that their company outperforms peers, meets growth goals, and benefits from valuable board contributions.
The report emphasizes the importance of proactive expectation-setting. CEOs who engage in regular, explicit conversations with their boards about support needs report significantly higher levels of satisfaction and effectiveness. Regular communication between the CEO and board chair is essential for adapting to shifting priorities and ensuring the board remains aligned with business needs.
To close the confidence gap, Spencer Stuart recommends that CEOs and boards:
- Regularly define and revise their working model.
- Align on organizational vision, CEO accountability, performance evaluation, and communication cadence.
- Ensure the board’s composition reflects strategic priorities.
- Foster a culture of continuous learning and relevance.
Ultimately, the CEO-board relationship is a dynamic partnership requiring conscious, two-way effort. As CEOs confront mounting pressures and uncertainties, and as boards seek to remain strategically impactful, both parties must evolve their roles to better align, communicate, and co-lead toward long-term success.
Note: IICA duly acknowledge the ownership / authorship of the Report and republishing the same only for education purpose of ID Databank members.
