C-Suite Prioritizes a Shift to Proactive Management

According to PR firm Padilla, 67% of executives report their employees are ready to support change initiatives, and leaders are prepared to capitalize on that.

Business leaders are signaling a shift away from reactive management toward a stronger focus on strategic goals, according to the third annual C-suite Perspectives study from public relations firm Padilla Spear Beasley Inc.

In 2022, C-suite leaders faced uncertainty and called for greater communication transparency; by 2023, fatigue had set in, prompting a renewed focus. In data collected in 2024, despite ongoing challenges, there was a clear drive to move forward.

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“Leaders ended 2024 with cautious optimism that they could move beyond the near-term management mindset of the past several years and get back to executing on long-term vision and direction,” said Matt Kucharski, Padilla’s president, in a statement. “That desire to move things forward is coming up against political/geopolitical uncertainty, a fragile workplace culture, and an era marked by increasing mistrust and polarization. This leaves today’s C-suite leaders looking for a way to power through.”

Drawn from surveys of more than 100 C-suite executives and more than 1,000 employed adults and from interviews with 50 senior leaders, Padilla’s findings highlighted evolving executive priorities in a post-crisis landscape.

The company’s key survey findings:

Change Readiness: Leaders have spent the last few years building change-resilient cultures. Two-thirds (67%) of C-suite executives reported that their employees are ready to embrace and assist with change initiatives within the organization, and the executives are prepared to capitalize on that.

Artificial Intelligence: Of C-suite executives, 83% reported either selectively or aggressively adopting AI, driven by better-quality products and services. Although leaders reported optimism, 24% of employees said they remain uncertain and see it as a moderate or significant threat. Determining whether and how to leverage AI was the leadership challenge with the most significant increase in 2024 from 2023.

Business Relevance: Pushback on initiatives based on environmental, sustainable and governance considerations and diversity, equity and inclusion is causing some leaders to reconsider their strategies, while others are doubling down, adjusting programs (often quietly) and emphasizing business value.

Employee Well-Being: Despite the increasing challenges of building strong employee cultures, 50% of C-suite respondents said they think their employees’ well-being has improved over the past year. Significantly, only 29% of employees agree.

C-Suite Turnover: The “Great Executive Resignation” continues at unprecedented levels. From 2023 to 2024, there was a seven-percentage-point increase in leaders stepping back earlier than in the past—up to roughly 1 out of 5 leaders. Meanwhile, the next level of leaders does not necessarily want to pick up the baton: 61% of employees (ages 52+) expressed wanting their career or responsibilities to remain the same or be simplified.

 

SEC Guidance Clarifies Insider Trading Rules for 401(k) Brokerage Windows

The Securities and Exchange Commission clarified what applies when a 401(k) plan participant subject to insider trading rules sells company stock through a self-directed brokerage window.

The Securities and Exchange Commission recently clarified that when a 401(k) plan participant subject to insider trading rules sells company stock through a self-directed brokerage window, the transaction must meet all requirements of Rule 10b5-1(c)(1), which provides an affirmative defense against insider trading liability, including the requirements governing open market trades.

A self-directed brokerage window in a 401(k) plan allows participants to independently buy and sell, through a brokerage platform, a broader range of investments beyond the plan’s standard offerings. 

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For participants subject to insider trading laws, restrictions on trading company stock apply equally to shares held in their 401(k) accounts—whether the stock is part of the plan’s core investment lineup or purchased separately through the brokerage window.

Since transactions made through these brokerage windows involve open-market counterparties, participants—including corporate insiders—must ensure their trades meet all conditions of the rule. This includes, among other requirements, committing to a binding contract, instruction or written plan when not in possession of material nonpublic information.

“Even though the transactions are made through a retirement plan, they are treated the same as open market trades when it comes to insider trading rules,” the SEC stated in its April 25 update.

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