2025 Governance Events Rewrote the Rules—Prepare for What’s Next | Farient Briefings
December 17, 2025
2025 Governance Events Rewrote the Rules—Prepare for What’s Next
As 2025 draws to a close, boardrooms will face pivotal decisions. This year’s seismic shifts—from unprecedented CEO pay and evolving ESG priorities to the rapid rise of AI in talent management—have fundamentally reshaped the rules of leadership, risk, and accountability.
Looking to 2026, the challenges only intensify. Boards will face a fast-moving environment defined by regulatory reforms, activist investors, and global standards convergence. Success will hinge on embedding ethical AI and skills-based talent strategies at the core of organizational decision-making.
The lessons of 2025 are a blueprint for agile, resilient, and value-driven governance in the year ahead.
In the News
Millions or Billions? CEOs with the Widest Gaps Between CAP and Total Comp—Agenda
“It’s a red flag that says, ‘Go, look more into this.’ When there’s a major disconnect between compensation actually paid and the figures in the Summary Compensation Table, it raises real questions about whether the program is delivering excessive pay or simply reflecting strong performance,” said Robin A. Ferracone, CEO of Farient Advisors.
“Companies need something standardized and comparable — something performance-adjusted. Is CAP perfect? No. Is it indicative? Yes.”
Agenda’s latest coverage highlights how dramatic stock-price spikes — particularly in tech and AI-driven companies — have widened CAP gaps for several CEOs. These swings underscore why boards are under pressure to understand what the pay-versus-performance (PvP) disclosures reveal about alignment, risk, and design choices.
Farient has incorporated PvP metrics into its diagnostic toolkit, helping boards assess whether compensation outcomes match company performance and industry realities.
With Glass Lewis set to integrate CAP into its pay-for-performance methodology, the disclosures are becoming even more influential in shaping investor expectations and board decision-making.
Read the full story in Agenda (subscription required).
Read moreThank You to Our Partners and to Each of You
Throughout the year, Farient Advisors collaborates with many organizations allied to the work of boards of directors who are as committed to upholding the standards of good governance practices.
For this year, we would like to acknowledge our mutually beneficial partnerships with Corporate Board Member, the Council for Institutional Investors, Directors & Boards, EY, the National Association of Corporate Directors, and The 350 Club, which represents 98% of the FTSE 100 in the UK.
And to each of you, happy holidays.
About Farient Advisors
Farient Advisors LLC, a GECN Group Company, is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services linking business and talent strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, Newport Beach, New York, Louisville, and London and works with clients globally through its partnership in the Global Governance and Executive Compensation (GECN) Group. Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.
© 2025 Farient Advisors LLC. | Privacy Policy | Site by: Treacle Media