Directors face alarming crisis of faith, new figures show

Directors face an alarming crisis of faith. New figures highlight a dramatic fall in C-suite confidence in crucial boardroom areas. 

It’s a crisis driven by the dramatic changes in 2020s business trends. Many companies have seen strategies turned on their heads, and it has created uncertainty about what the future holds. 

It is – and should be – a massive source of alarm for board members, because any decrease in C-suite confidence can have massive ramifications for a company’s ability to stay ahead of the game. 

New data published by Russell Reynolds in July 2026 reveals stark findings about how CEOs see their non-executive governance colleagues (either on a separate supervisory board or the NEDs on a single-tier board). 

1. Only 57% of CEOs believe their non-executive colleagues have the right mix of skills and experience to guide the company in the future. This is down from over 70% in 2021. 
2. Just over 59% of CEOs believe their non-executive colleagues have a strong grasp of competitive dynamics in their industry.
3. In both cases, boards have been asked the same question about their own abilities, and their levels of confidence have stayed the same (circa 75-77%)

This means that boards’ perception of their own skills, experience and grasp of industry dynamics has been notably different from their CEO’s perception of the same. Moreover, that difference has been growing year on year. 

In short, boards are now staring down the barrel of an increasing crisis of faith in their ability to oversee decision-making. They may find reassurances in the private, contained boardroom environment, but those reassurances don’t stretch much further. 

It’s especially worrying when you consider the CEO’s role as leader of a wider C-suite team, and that most have probably answered the above questions based on both their own opinions and those of their executive colleagues. 

Russell Reynolds also compiles a bi-annual Global Leadership Monitor, with one of the key metrics being what corporate leaders consider their greatest short-to-medium-term challenges, plus how prepared they feel they are to face them

The latest figures in this area show that the top three are:

1. Technological change (ranked by 63% of respondents, while 51% of respondents feel prepared for it)
2. Uncertain economic growth (ranked by 57% of respondents, while 43% of respondents feel prepared for it)
3. Geopolitical uncertainty (ranked by 54% of respondents, while 32% of respondents feel prepared for it). 

It’s a good insight into the issues that can dominate leaders’ minds as they think about the capabilities of their boards. Pivottally, all three challenges are ones which have evolved considerably over the course of the 2020s specifically. 

Technological change has taken centre stage because of AI, its fast pace of change, and the new risks associated with it. Meanwhile, uncertain economic growth and geopolitical uncertainty go hand in hand as defining features of this decade. Everything from the pandemic to wars in Ukraine and Gaza, to the supply chain crisis, to tariffs and trade wars, to the rise of new political movements in business epicentres that are challenging the old order. 

It’s all happening rapidly. Corporate leaders know this, but they’re unsure about the ability of their boards to rise to the occasion. 

Absolutely, particularly the difference of opinion between boards and their C-suite colleagues. 

Ultimately, if the C-suite continues further into this “crisis of faith” territory, then many companies risk a serious and permanent disconnect between executives and the board. This is dangerous. It’s the most criticial leadership overlap in business, and if a lack of confidence defines it, it brings on entirely new categories of risk. 

Very quickly, it could lead to other problems like:

• Deteriorating communication practices unless concerns are addressed in full and routinely, never shying away from constructive criticism. 
• A poor leadership culture, especially if the gap continues to grow in the “board confidence” metric between leaders and executives. 
• A lack of engagement with the issues that really define the day-to-day corporate challenges. If a board feels that it’s handling things like geopolitical risk and AI oversight, but the C-suite doesn’t share those sentiments. It may mean the board needs to assess its skill sets further, looking at any areas that they might need fresher expertise (especially for areas like AI, which never slow down).