Directors Quarterly: October 2024

The implications of the US elections for companies, the economy, and the broader geopolitical landscape in the months and years ahead have business leaders and boards bracing for extended uncertainty as they prepare to close out 2024. Scenario planning is no doubt top of mind: Ahead of our September webcast exploring the geoeconomic outlook, only 26 percent of more than 330 directors responding to our pulse survey said they were confident in their company’s ability to pivot effectively post-election.

According to our 2024 KPMG CEO Outlook, CEOs’ primary focus is anticipating and staying ahead of compound volatility. This year’s survey shows CEOs are strategically allocating capital to address near-term risks such as cyber and geopolitics that can cause abrupt business disruption in the short term, while making long-term investments in generative artificial intelligence and mergers and acquisitions to spur future growth.

Given the focus on leadership in times of uncertainty, it’s critical that boards give extra attention to the CEO succession planning process. In this issue, we also share insights from directors on the importance of spending time identifying what the company needs in a future CEO before addressing the “who.”

Also in this edition, we highlight financial reporting and auditing developments that audit committees should be paying attention to in the near term, including an update on sustainability reporting, recent SEC and FASB headlines, and PCAOB developments of interest to audit committees.