THE BAD ARGUMENTS AGAINST CORPORATE BOARD REFRESHMENT
Corporate board actions (and inaction) have long been a hot business discussion point. But now, just how long that same group of old white guys has sat in their boardroom is a growing controversy.
Corporate board tenure and refreshment were hot topics this proxy season, writes Ralph Ward, in the June issue of online monthly Boardroom INSIDER. Growing board tenure means a solid block of long-term, white male directors, making it harder for younger, female and diverse board prospects to push through boardroom doors. Further, the share of 70+ directors in the S&P 500 “climbed to 18.6% in 2016,” Ward writes. “The result is many directors out of the loop on new tech and business models.”
Ward notes that some incumbents push back on broad boardroom refreshment with concerns that they will lose a current long-term talent. But “there are always several younger (and possibly better) talents waiting to take his place.”
Also in the June issue of Boardroom INSIDER: