A look at board composition: How does your industry stack up?

Board composition will be top of mind for investors in 2017. Some industries are taking more steps to refresh their board than others. We compared groups of leading companies in 9 different industries against the S&P 500 to find out.

Get serious about board refreshment

Corporate governance is no longer an issue your company can take lightly. Your investor base wants to know that you’re focused on attracting and retaining directors who are diverse in every sense of the word. We believe gender diversity is a bellwether for boards making efforts to become diverse overall.

How important is board diversity?

Are two heads better than one?

Certain industries have moved away from having their company led by one individual with a combined CEO/Chairman of the Board role, while others don’t plan on making the change anytime soon. Despite the importance of independence, a number of companies in certain industries do not have an independent lead or presiding director even when they have a combined CEO/Chairman structure in place.

Should board chair and CEO roles be combined?
Which industries lead in board diversity?

Leaders vs laggards

We looked at several measures that we feel are indicative of a well composed board. Diversity, term limits, and mandatory retirement age to name a few. So which industry led the way across most of these? Retail.

Contact us

Paula Loop
Leader, Governance Insights Center
Tel: +1 (646) 471 1881
Email

Terry Ward
Partner, Governance Insights Center
Tel: +1 (612) 326 2066
Email

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