Harvard Law School Forum on Corporate Governance, 07/28/2017
One criticism frequently leveled against boards of directors is that when it comes to filling vacant board seats, they don’t cast the net widely enough.
Fewer than one-quarter of S&P 500 directors have held only one directorship in the U.S., and more than three-quarters have held, or still currently hold, at least one additional board seat.
S&P 500 companies seem increasingly willing to take on “new” directors. Overall, out of that 23.6 percent of directors with only one directorship, S&P 500 companies have added nearly 200 new individuals to the boardroom in that timespan.
A second interesting dimension to the question is around industry concentration for directors that hold multiple directorships. Some industries show a higher need for “specialty” directors. Finding the right balance and right combination of directors is different for every company… new versus experienced, industry expertise versus broad knowledge, the right level of refreshment… Continue reading here.