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.
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.
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.
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.