Board composition and performance:
What’s top of mind for U.S. directors in 2019?
We recently surveyed 113 nominating/governance committee members to gain a first-person perspective on board trends and priorities. Here are the results:
Board Refreshment
of nominating/governance committee members felt that their board had one or more underperforming directors in the past three years, and more than half addressed the underperformance by asking them to leave the board
more than half
43
%
The biggest drivers of board refreshment will be:
%
41
Replacing retiring directors
41
%
Adding
new skills
to the board
Recruiting Profiles
Increasing
gender diversity
Current
highest-priority board
recruiting profiles
the next three years
Highest-priority board recruiting profiles in
1
2
3
4
5
Female directors
36%
Technology experience
34%
Active CEO/COO
32%
Financial experience
28%
Operational experience
27%
Female directors
40%
Technology experience
Active CEO/COO
35%
Digital / social media experience
35%
Minority
24%
38%
Looking ahead,
digital/social media experience as well as minority directors
become more important recruiting profiles, replacing financial and operational skill sets in the top 5 priorities.
Nominating/Governance Committee Priorities
2/3 of nominating/governance committee members said that their board considered
environmental, social and governance
in the past year,
1
2
3
4
5
Considered ESG/sustainability issues
66%
Enhanced age diversity
39%
Enhanced racial/ethnic diversity
38%
the next three years
Priorities in
Enhancing gender diversity
66%
Enhancing racial/ethnic diversity
65%
Enhancing board and individual director evaluations
61%
Adding younger directors / Formalizing a refreshment strategy *
37%
(ESG) issues
Issues addressed in the
past year
Added boardroom expertise
73%
Enhanced gender diversity
75%
Expanding director sector/ industry experience
82%
Like last year, 65% of respondents of nominating/government committee members say
they have already considered or are considering younger directors, reinforcing the fact that
it’s in the top 5 priorities in the next three years.
younger directors
What other issues are affecting boards?
Read More
Read More
continue to be in the future.
is once again the top recruiting priority and will
but they don’t expect ESG to be a top priority in the next 3 years.
underperforming directors
had one or more
* Tie between both priorities
Average number of directors expected to retire/join S&P 500
boards in each of the next 3 years
expected to
retire/join S&P 500
Board composition and performance:
What’s top of mind for U.S. directors in 2019?
We recently surveyed 113 nominating/governance committee members to gain a first-person perspective on board trends and priorities. Here are the results:
Board Refreshment
Average number of directors
expected to retire/join S&P 500
boards in each of the next 3 years
to retire/join S&P 500 boards
expected to
to
43
%
of nominating/governance committee members
felt that their board had one or more underperforming directors in the past three years, and more than half addressed the underperformance by asking them to leave the board.
more than half
of nominating/governance committee members felt that
their board had one or more underperforming directors in the
past three years, and more than
addressed the underperformance
by asking them to leave the board
had one or more
underperforming directors
more than half
The biggest drivers of board refreshment will be:
41
%
Replacing retiring directors
41
%
Adding
new skills
to the board
Recruiting Profiles
Increasing
gender diversity
is once again the top
recruiting priority and will continue to be in the future.
1
2
3
4
5
1
2
3
4
5
Current
highest-priority board recruiting profiles
Female directors
36%
Technology experience
34%
Active CEO/COO
32%
Financial experience
28%
Operational experience
27%
the next three years
Highest-priority board recruiting profiles in
Female directors
40%
Technology experience
38%
Active CEO/COO
35%
Digital/social media experience
35%
Minority
24%
Looking ahead,
digital/social media experience
as well as minority directors
important recruiting profiles, replacing financial and operational skill sets in the top 5 priorities.
become more
Nominating/Governance Committee Priorities
2/3 of nominating/governance committee members said that their board considered
Environmental, Social
and governance (ESG) issues
in the past year,
but they don’t expect ESG to be a top priority in the next 3 years.
1
2
3
4
5
1
2
3
4
5
Issues addressed in the
past year
Enhanced gender diversity
75%
Added boardroom expertise
73%
Considered ESG/sustainability issues
66%
Enhanced age diversity
39%
Enhanced racial/ethnic diversity
38%
the next three years
Priorities in
Expanding director sector/ industry experience
82%
Enhancing gender diversity
66%
Enhancing racial/ethnic diversity
65%
Enhancing board and individual director evaluations
61%
Adding younger directors/ formalizing a refreshment strategy
37%
Like last year, 65% of repondents of nominating/government committee members say they have considered already
reinforcing the fact that it's in the top 5 priorities in the next three years.
younger directors,
What other issues are affecting boards?
Read More
* Tie between both priorities