A new index that debuted Thursday measures the confidence of company executives in a way that, according to the index’s originators, “provides the view projected through a boardroom lens for the first time.” The National Association of Corporate Directors (NACD) Board Confidence Index, presented by Heidrick & Struggles International, Inc., in conjunction with Pearl Meyer & Partners, indicates that the 155 directors of public companies who responded to the survey came in at a confidence level of 56.6, just above the midpoint.
According to Heidrick & Struggles, Theodore Dysart, managing partner, believes that a view of how public company board directors are feeling is essential in order to track trends that could indicate future economic activity. "At the end of the day, even the CEO has to go to the board to deploy capital and make an investment," Dysart said in a statement. "Over time, the Board Confidence Index should become a leading indicator of what's to come in other economic indicators. The decisions on where and how companies allocate capital begin in the boardroom."