Key Trends for Private Company Boards in 2023: Insights from Rafael Pastorone

 “With fewer stringent regulatory requirements leaving more time for strategy and innovation compared to public company peers, being a private company board director can be more attractive than being a public company one.” Rafael Pastor, Director on the Boards of KinderCare Education, Edisability, and Rosetta Books



Mandy Wright’s article on NACD highlights some key trends and challenges that private company directors and those aspiring to become should pay attention to in 2023. The first trend is IPO hesitancy, with many companies having held off or even withdrawn plans to go public in 2022 due to geopolitical tensions and market uncertainty. While initial public offering (IPO) hesitancy may not be new, the threat of a recession looms closer, which may further dissuade companies from going public. Being a public company is also less attractive due to the regulatory burden that public companies must bear.



The second trend is increased M&A activity as companies and private equity firms look for alternatives to going public. Despite the IPO hesitancy, there is still $1.2 trillion of dry powder among private equity firms ready to be deployed. Thus, Rafael Pastor believes that there will be an increase in merger and acquisition activity.



The third trend is that private company boards need to change the skills they look for, especially when it comes to cybersecurity, environmental, social, and governance issues, as well as social media. Stuart Levine, the CEO of Stuart Levine & Associates, suggests that independent assessments will become critical to assessing board directors’ independence and effectiveness in private companies.



The fourth trend is talent tensions, including finding the right skills, strengthening the culture, and working through layoffs. Family-owned private companies, in particular, may struggle with this due to their paternalistic culture. But they could get talented people by taking advantage of the fact that jobs are being cut in the public sector.



In light of these trends, private company boards must prepare themselves adequately for the challenges that lie ahead. Having the right people in the boardroom and at the top of private organizations will improve the chances that these companies succeed, no matter what may come.


Original Article: NACD



More to explorer

Steering the Course: A Guide to Effective Boardroom Leadership

The boardroom is the organization’s nerve center, and effective boardroom leadership is the compass that charts its course. This article equips you with the navigational tools to excel as a board leader. Explore the critical qualities of effective boardroom leadership, develop your leadership skills, and discover how BoardsI can be your partner in shaping strategic direction and propelling your organization towards success! Ready to take the helm and guide your board to new heights? Download our free checklist on “The Essential Traits of Effective Board Leaders” and set sail on your boardroom leadership journey today!

Navigating the Boardroom: A Guide to Corporate Board Seats

A corporate board seat is a coveted position signifying leadership recognition and an opportunity to shape an organization’s destiny. This article equips you with a compass to guide you through the key considerations for pursuing a corporate board seat. Explore the rewards and demands of board service, assess your readiness, and discover strategies to land your dream board position. BoardsI can be your partner in navigating the boardroom and excelling in your governance journey!

Steering with Vision: A Guide to Strategic Board Management Education

In today’s dynamic business landscape, effective board leadership hinges on strategic vision. Strategic board management education equips directors to chart a course for long-term success. This article serves as your navigator, outlining the benefits and key elements of strategic board management education. We’ll explore how these programs can elevate your board’s strategic thinking, enhance risk management, and foster effective stakeholder engagement. Ready to empower your board to become a strategic force? BoardsI can be your partner in developing a customized education program

This will close in 0 seconds