Corporate directors care more about mental health amid COVID-19
'Surprising' effect of COVID-19 on governance practices and behavior.
Corporate board members weren’t particularly concerned about mental health issues during pre-COVID-19 times. But the coronavirus pandemic, which has upended so many norms and priorities, has dramatically altered how directors approach mental well-being, according to a new report.
The finding came as a surprise to the group behind the study, the Diligent Institute, a think tank of New York-based corporate governance firm Diligent Corp., said the institute’s executive director, Dottie Schindlinger.
“We didn’t expect this response,” she said Monday. “What we heard from directors was that thinking about how to provide support to senior executives on their mental health and well-being became a critical part of being a good director.”
She added, “We also heard directors saying they were talking about mental health issues at the board table in a way that had never happened before.”
The research group interviewed directors in April and again in September and October to learn how COVID-19 had changed modern governance practices and behaviors. The latest round of interviews with more than two dozen directors revealed that company leaders are thinking more than ever before about mental health issues.
“The emotional toll this has taken on everyone is unprecedented. You have to pay attention to your own mental health, especially as a director and a leader. Take care of yourself, and make sure your peers are taking care of themselves too,” stated survey participant Phyllis Campbell, who serves as the chair for JPMorgan Chase & Co.’s business in the Pacific Northwest.
She added, “We never used to talk about mental health and well-being, and it was unlikely CEOs would ever admit they aren’t doing well. Be the ears and sounding board to your C-suite team and keep in touch with their mental needs.”
Another participant, former Nutrisystem Inc. CEO Dawn Zier, a board director for several companies, including Spirit Airlines Inc., noted that during pre-COVID times “human capital issues did not dominate the conversation as much as other topics” related to risk management.
“As a result of the pandemic, we are being forced to really address people issues such as working from home, child care, home schooling, illness, financial burdens and mental health,” Zier stated. “It’s unprecedented, and authentic demonstrations of empathy and compassion from leadership and boards have solidified how employees feel about their company.”
Karen Clarke-Whistler, a director for Canadian oil and gas company Enerplus Corp. and former chief environment officer for TD Bank Group, stated that risk management is “even more focused around making sure our employees and contractors are okay.
“We’ve been putting more effort into mental health, especially as this has gone on,” she added. “We have been looking more at the people processes aspect of the business.”
Other findings from the survey include:
- Directors weren’t embracing virtual board meetings and virtual onboarding during the early days of the pandemic, but they’ve adapted to the practice. In fact, some said they would like to continue having virtual meetings after the risks of COVID-19 dissipate.
- Boards are beginning to shift out of “initial crisis management” mode and are focusing again on long-term strategies. But those strategies still take the pandemic and its widespread repercussions into account.
- Directors also reported dramatic changes in the risk landscape. For instance, directors said they had been unprepared for a global crisis disrupting supply chains and physically separating companies from their employees and customers.
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