Board Succession Planning BoardVision Julie Hembrock Daum, Practice Leader, North American Board Services
Director Turnover > In the 2014 proxy year, 371 independent directors were added to S&P 500 boards representing a 9% increase over 2013 and a 26% increase in the past two years > However, despite the recent uptick, the number of directors added to S&P 500 boards remains considerably less than a decade ago, when 443 new directors joined S&P 500 boards > This is a concern for shareholders who recognize the world is changing quickly yet the view in the boardroom is static Source: 2014 Spencer Stuart Board Index
Retirement Age > 73% of all S&P 500 boards have established a mandatory retirement age for directors, relatively stable from 72% in 2013 and 75% in 2009 > Of the 361 boards that specify a retirement age, 30% now set it at 75 or older and 52% of boards have a retirement age of 72 > A decade ago, only 5% of boards had a retirement age of 75 or higher, and 40% set retirement at age 72 Source: 2014 Spencer Stuart Board Index
Board Evaluations > 98% of boards report that they conduct some form of annual board evaluation, up from 94% five years ago > However, only 34% of boards evaluate individual directors as well as the full board and its committees > 51% evaluate the full board and board committees Source: 2014 Spencer Stuart Board Index
Diversity > Diversity remains at the top of boards wish lists for new director backgrounds > More than 70% of boards are looking to add a women and close to two- thirds of boards are looking to add a minority > Boards are also expanding their description of diversity to include those who bring an international or global perspective Source: 2014 Spencer Stuart Board Index
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