New England business leaders confident in U.S. economic recovery

The NACD New England Chapter has conducted a new survey, according to which 78 % of the boardroom directors and other business leaders believe that the U.S. economy will recover either significantly or slightly within the next 12 to 24 months. While only 5 % believe the economy will worsen, and 16 % expect it to remain the same. Thus, 145 local members of public, private and non-private boards were asked a total of 19 questions about the economy and issues surrounding boardroom leadership business leaders.

The survey showed that sixty-three % believe the New England economy is stronger than the national economy, as compared to 20 % who see little difference between the 2 and 11 % who feel the national economy is stronger than the economy in the region. Meanwhile, 42 % expect the New England economy to recover faster than the national economy, while an additional 34 % - at the same pace. Just 15 % see New England lagging the national economy in recovering from the recession.

Besides, the survey produced findings in the areas of risk management, government oversight and boardroom diversity which suggest that New England’s business community is seriously confronting some of today’s most critical issues in corporate governance. 43 % think the U.S. government should regulate risk management, similar to how the Sarbanes-Oxley Act regulates accounting. But 41 % believe government regulation is not necessary. 16 % do not know or are not sure.

The survey revealed mixed sentiment regarding how much power government should have in regulating the corporate sector, particularly in light of recent federal bailouts in the automotive and financial services industries. 59 % believe the economic stimulus package signed into law by President Obama will have a positive impact on the U.S. economy, while 25 % believe the government should intervene in business.

The ability to assemble a board that possesses diverse skills is important to New England directors. 84 % see a need for boards to increase the focus they place on candidates’ skill sets and experience when selecting board nominees. 35 % said that their boards are already comprised of individuals with diverse backgrounds. 42 % said their Boards are somewhat diverse, though most members have skill sets similar to those of their representative industries. Only 12 % do not consider their boards to be diverse.