Asking the right questions about board performance
2023 index
US Spencer Stuart Board Index
What’s in this report from Spencer Stuart Board Services:
Successful companies understand that their boards and directors are strategic assets. But are they making the most of those assets? As companies navigate an increasingly challenging and fast-evolving business environment, boards need to ask tough questions about their skills, performance, composition and priorities.
Now in its 38th year, the U.S. Spencer Stuart Board Index analyzes the shifting composition and governance practices of S&P 500 company boards. This report sets out the trends revealed by Spencer Stuart’s in-depth analysis of this year’s proxy statements.
A few highlights:
- Almost all S&P 500 boards — 98% — report that they carry out an annual performance evaluation, with 47% undertaking some form of individual director evaluation.
- S&P 500 boards are becoming more diverse. Directors who self-identify as women and/or an underrepresented minority and/or LGBTQ+ represent a significant majority of directors joining S&P 500 boards and make up a growing percentage of S&P 500 directors overall. They now make up 33% and 24% of boards, respectively.
- CEOs and people with financial expertise are in demand. Nearly one-third of new directors were pulled from active or retired CEOs, up from 23% last year.
