Directors Quarterly: April 2024

With the explosion of generative artificial intelligence (Gen AI), companies are facing the challenge of moving quickly—but not too quickly. Gen AI governance has moved to the top of many board agendas as directors understand the potential competitive advantages as well as the potential risks that the transformative technology poses for the company and its strategy.

For insights on the current state of board oversight, check out findings from our director survey and our recent KPMG Board Leadership Center webcast discussion of the risks, opportunities, and disruptions posed by Gen AI.

Our financial reporting and auditing update includes the latest developments on the Securities and Exchange Commission final rule on climate-related disclosures, final rules and guidance related to special purpose acquisition companies (SPACs), and the recent dialogue about the Public Company Accounting Oversight Board (PCAOB) proposal on noncompliance with laws and regulations (NOCLAR).

In this edition, we also report on trends in Latino representation on Fortune 1000 boards. Our latest study, in collaboration with Latino Corporate Directors Association, finds that Latino directors held 5.0% of Fortune 1000 board seats in 2023, up from 2.7% in 2019.

Finally, we share insights from our discussions with private company directors and CEOs on how independent voices can help add value to private company boards, with practical takeaways for successfully tapping into the value of independent directors.