Back to Global Corporate Governance Trends for 2026
Coming off a year marked by a series of consequential governance developments, Indian boards are likely to be further tested in their judgment and agility. Complex situations have blurred the line between the spirit and the letter of regulation, prompting deeper reflection on board accountability. The Security and Exchange Board of India’s (SEBI’s) new materiality norms for related-party transactions will introduce a more pragmatic, scalable and context-driven framework for listed companies. Accelerated technology investments, a mounting influence of proxy advisors, and a record wave of IPOs that ushered in many first-time independent directors are among the defining trends shaping the corporate landscape. Another notable difference is the age profile of independent directors on new IPO boards; on average they’re nearly a decade younger than those on established Top 200 boards. This shift reflects the emergence of a new cohort of professionals with diverse industry and entrepreneurial experience, bringing fresh and more contemporary perspectives but potentially less boardroom tenure.
Given India’s shifting geopolitical landscape, rising regulatory complexity and an economic architecture that’s reshaping, board agendas are rapidly adapting to accommodate the most pressing strategic concerns. Looking to 2026, Indian boardrooms will engage in more nuanced discussions focused on the issues materially impacting their business.
The government’s push to build a world-class digital public infrastructure (DPI) as a digital backbone—characterized by interoperable platforms, low-cost innovation and open access—is disrupting traditional business models, driving efficiencies and unlocking new markets. This disruption is evident in the example of Payment Banks (specialized, smaller-scale institutions launched by the Reserve Bank of India). They found their businesses under attack from the government’s thrust on the United Payments Interface, prompting companies to grapple with and revisit their own relevance. In this environment, boards must quickly build fluency in how the DPI stack affects their sectors, a complex task requiring vigilance and continuous learning as new linkages and rollouts emerge.
Compliance has never been more demanding. In sectors such as banking and insurance, where multiple regulators overlap, boards face an increasingly intricate web of sometimes divergent mandates. With frameworks evolving faster than organizations can adapt, boards will likely require more focused attention on compliance oversight and managing regulatory risks.
India’s rapid and widespread adoption of AI—among the fastest globally—is outpacing board readiness. Directors now face the dual challenge of ensuring responsible deployment while harnessing AI’s transformative potential. However, the implications extend beyond business efficiency and cost optimization. In a country with vast underemployment, the human and social impact of AI adoption demands nuanced stewardship. As this new technology unfolds, the most credible boards are likely to take a balanced view of AI as an operational accelerator, strategic growth lever and societal disruptor.
The unrelenting churn of geopolitics for India—from wars and sanctions to shifting trade regimes and civil unrest—has elevated risk management to a core board discipline. Supply chains, capital flows and market access are being redefined in real time. In 2026, boards will need sharper geopolitical literacy and a constant line of sight into government policy responses to navigate these external shocks effectively.
Millennials and Gen Z are rewriting the consumption playbook. Legacy go-to-market models are losing traction as digital-native competitors capture younger segments with agility and purpose. Savvy companies are experimenting aggressively with new distribution models and pursuing acquisitions of disruptive startups. Boards, in turn, will be called to steer through fundamental strategic choices around integrating innovation into the company’s DNA along with balancing capital allocation decisions between building and buying capabilities.
Even well-run businesses are encountering growth plateaus or existential disruption. Boards will face pressure to make bolder strategic moves, embracing diversification, adjacencies and transformative bets. In the backdrop of a liberalizing economy, high private-market valuations are fueling a fear of missing out, pushing companies to explore entirely new sectors in search of sustainable growth and shareholder returns.
Beneath the surface, a leadership crunch is emerging. Too few seasoned executives and thin succession pipelines are constraining organizational agility. This year, boards can expect to grapple with actively nurturing mid-level talent, attracting digitally fluent leaders and championing cultures of continuous learning. Forward-looking boards understand that the next generation of leadership must be future-proof and will be tasked with overseeing a human capital strategy equipped to navigate disruption, evolving expectations and volatile markets.
Recent, sudden and unexpected departures at Indian companies have resulted in boards scrambling for successors. These cases expose the risks of delaying formal succession planning. Boards feel more pressure to act before they face a constrained choice, such as being unable to fire an underperforming CEO due to a lack of a succession pipeline. Accordingly, more boards are expected to hold long-overdue discussions this year on establishing formal processes.
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