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The highlights of 2023
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2023
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25%
30%
35%
20%
15%
10%
05%
93.8%
%
78.2
%
17.9
Board Monitor Hong Kong
In 2022, Hang Seng boards saw a record share of appointments going to women and a decrease in the appointments of first-time public board directors.
2023
01 Overview
A sustained appetite for board refreshment in Hang Seng companies has allowed boards to recalibrate their composition: in 2022, we saw a bounce back in the share of appointments going to directors who are active executives, a record share of appointments going to women, and a decrease in the appointments of first-time public board directors.
The increase of appointments of directors who are active rather than retired could mean that companies are now more relaxed about allowing their executives to spend time on external boards rather than focusing exclusively on their business. And companies are seeking wider executive experience for their boards, bringing in regional leaders, presidents, chief information officers, and chief operating officers, among others. In parallel, whether active or retired, the share of seats that went to directors with CEO experience remained low, at 18%—almost half of pre-pandemic levels—and for CFO experience the figure dropped to 6%, an all-time low on par with 2019.
The sharp increase of appointments that went to women is encouraging, and no doubt a consequence of the 2022 Hang Seng requirement that all listed companies’ boards have gender diversity, and which will ban single-gender boards beginning in January 2025. While many companies took steps to fill the gender gap, 10 out of the 75 companies in our report still have boards made up only of men. Hang Seng also set reporting obligations with companies, requiring the disclosure of the gender ratio of their workforce and setting numerical targets for broader board gender diversity.
We are yet to see the full extent of post-Covid board composition trends as lockdowns in Hong Kong were stricter and lengthier than those in most other markets, meaning that the mobility of directors and nomination panels was severely restricted until the last quarter of 2022.
01 Overview
A sustained appetite for board refreshment
02 highlights
Hang Seng companies maintained the strong appetite for board refreshments that began in 2021.
04 Methodology
This report is part of Heidrick & Struggles’ long-standing study of trends in board composition in markets around the world. Produced by our global CEO & Board Practice, these reports track and analyze trends in non-executive director appointments to the boards of the largest publicly listed companies in Australia (ASX 200), Belgium (BEL 20), Brazil (BOVESPA), Canada (TSX 60), Colombia (COLCAP), Denmark (OMX Copenhagen 25), Finland (OMX Helsinki 25), France (CAC 40), Germany (DAX and MDAX), Hong Kong (Hang Seng), Ireland (ISEQ), Italy (FTSE MIB), Japan (TOPIX Core 30), Kenya (NSE Top 40), Mexico (BMV IPC), the Netherlands (AEX), New Zealand
(NZX 10), Norway (OBX), Poland (WIG 20), Portugal (PSI 20), Saudi Arabia (Tadawul), Singapore (STI 30), South Africa (JSE Top 40),
South Korea (KOSPI 50), Spain (IBEX 35), Sweden (OMX 30), Switzerland (SMI Expanded), the United Arab Emirates (ADX and DFM),
the United Kingdom (FTSE 350), and the United States (Fortune 500). Information about executives is gathered from publicly available sources, BoardEx, and a Heidrick & Struggles proprietary database.
ABOUT THE REPORT
03 References
2022
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Acknowledgments
Thanks to the following Heidrick & Struggles colleague for his contributions to this report: David Hui.
Looking forward, boards should continue to focus on the strategic overall value of their board composition, make sure they appoint directors who have the broad executive experience required to take tough decisions, and bring to the table a diverse set of experiences and backgrounds and generations.
The share of seats going to directors who are active in an executive position bounced back in 2022 after a dip in 2021.
The share of appointments going to first-time public board directors hit its lowest since 2019.
A record share of appointments went to women.
Most common executive backgrounds of the 2022 appointments
For detailed market data and comparisons, please visit our interactive Board Monitor 2023 dashboard.
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42
35
2019
2020
2021
The average age of new non-executive directors has remained relatively steady since 2019.
2022
2021
2020
2019
67%
71%
55%
66%
There was also a decrease in the share of seats going to directors with CEO experience—half of the 2019 cohort. The share of seats going to directors with CFO experience remained similar to 2019.
18%
29%
37%
2022
2021
2020
2019
CFO experience
CEO experience
17%
14%
10%
6%
58
57
58
58
2022
2021
2020
2019
49%
2019
43%
2020
53%
2021
38%
2022
6%
6%
2019
24%
2020
30%
2021
42%
2022
CEO
Regional president/CEO
President
CFO
CIO
COO
CTO
CMO
Chief scientific officer
Division president/CEO
Other C-suite
18%
12%
11%
6%
3%
3%
3%
2%
2%
2%
3%
