Stay current on changes and developments in corporate law with a wide variety of resources and tools.
Companies in the S&P 500 index have added a record number of first-timers to their boards this year as they look beyond the traditional candidate pool of chief executive officers, according to a Nov. 2 analysis by executive search firm Spencer Stuart.
The research shows that incoming directors tend to be younger, more diverse, and more tech savvy than their peers.
Boards have typically sought out current or retired CEOs, who often have already sat on their own company’s board or another company’s board. “Many boards still think that’s the ideal director,” Julie Hembrock Daum, who leads Spencer Stuart’s North American Board Practice, told Bloomberg Law.
But the study found that the number of CEOs sitting on one or more S&P 500 boards besides their own has hit its lowest point in the past decade, while the number of incoming independent board members without any previous experience as a public company director has reached a record high of 45 percent.
Daum said part of it has to do with directors’ growing workload. “It’s also harder to be a CEO than it used to be,” she said.
Another factor is the recent push for different kinds of directors. Compared to more seasoned directors, those who are on their first board are more likely to be younger and actively employed, rather than retired. They also tend to have a background in technology, according to Spencer Stuart.
Incoming directors are more diverse, too. For the first time, slightly more than half of the nearly 400 new directors on S&P 500 boards are women, minorities, or both. “As soon as you take away the criteria of looking for an active CEO, you do open the boardroom up to more people,” Daum said.
The complete results of Spencer Stuart’s annual analysis will be released in mid-November.
To contact the reporter on this story: Andrea Vittorio in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Yin Wilczek at email@example.com
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)