What does it mean for you April 2017 Alexis H Stiles Supply amp Demand SampP 500 boards elected 345 new independent directors in 2016 Who were they We have placed over 4000 directors in the USand over 1300 women directors in the last 15 years ID: 590828
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Slide1
Women in the Boardroom
What does it mean for you?
April 2017
Alexis H. StilesSlide2Slide3
Supply & Demand
S&P 500 boards elected 345 new independent directors in 2016...
Who were they?
We have placed over 4,000 directors in the U.S....and over 1,300 women directors in the last 15 years…
How does a board search
work?
Turnover on S&P 500 boards averaged 5-7% over the past decade...
What kind of profiles are boards seeking?
+60% of new directors were already known to at least one board member or the CEO...
What are the implications
for you?Slide4
New Director SnapshotS&P 500 Board Composition
Average age of New Director
57
Slide5
The pool of highly experienced directors is shrinking
Active CEOs and C-level executives are sitting on fewer boards; competition for recently retired executives is high
More onerous commitment – many experienced directors are scaling back their boards and/or limiting their activities
Director specifications are more specific (e.g. technology,
cyber security, global, etc.
)Growing interest in board composition by shareholders. Board refreshment is also top of mind.
Experience “in the industry” is still importantThe Market for Independent Directors There is more room for a different type of first time directorSlide6
…and the data proves it New Independent Director Backgrounds 20062011
2016
Trend
New S&P
500 Directors
391
294345CEO/Chair/Pres/COO40%43%38%Decreasing
Other Corporate Executives15%21%23%IncreasingFinancial Backgrounds24%
18%
25%
Steady
Academics/Nonprofits
8%
7%
4%
Decreasing
Consultants
5%
4%
3%
Decreasing
Lawyers2%1%1%DecreasingSlide7
Path to the Boardroom
Source of Introduction to Board
26%
13%
31%
11%
27%22%12%
Source: 2016 Spencer Stuart Global Board of Directors SurveySlide8
How Boards Prioritize Future Director Needs
Board Skills
Matrix
and Gap Analysis
Company
Personal Background
Professional Background
Board Members
Age
Insider
CEO/President
Female
Diversity
Financial
Operations
Technology
International
Marketing
Regulatory/
Government
Active
Retired
Name of Director
(committees)
XXSlide9
Our Approach to Assessing Director “fit” Boards need to evaluate against all three dimensions:1
Relevant Skills and Experience
The relevant,
tailored pillars of expertise and experience – from functional to prior roles and charters
2
Core Director
Attributes
Five
essential
capabilities that shape director effectiveness:
Influence for Results
Independent Mindedness/Integrity
Interpersonal Skills
Inclination to Engage
Intellectual Approach
3
Culture Alignment
A specific
style profile assessed to align to the desired board culture
Relevant Skills & Experience
Intellectual Approach
Influence for
Results
Interpersonal Skills
Independent Mindedness/
Integrity
Inclination to
Engage
Culture & Fit
Culture & Fit
Culture & Fit
Culture & Fit
Culture & FitSlide10
Tangible
Intangible
Broad business experience
Board experience (ideally)
Specific skills - functional and sector level experience
The time to be a committed director
Profile and connections
Positive energyConstructive orientation Able to hold views; able to express them in a collegial mannerPotential to chair a board committee
Desired Board Director Traits Slide11
Source: 2016 Spencer Stuart Board IndexNew Director Wish ListProfiles in Demand
CEOs and financial expertise are
sought …
as are women and minoritiesSlide12
Strategic insight is prized; Industry knowledge is pursuedSource: 2016 Spencer Stuart Global Board of Directors Survey
Skills and Expertise Needed
Skills,
areas of expertise
Most
important for board service today
Most wanted to acquire with most recent appointmentStrategy67%33%Industry knowledge46%
53%Financial-audit44%30%Risk management27%12%
International-global
25%
24%
Regulatory,
legal and compliance knowledge
16%
15%
Technology
14%
14%
HR-talent
management
13%
6%Slide13
Female representation on U.S. boards is slowly growing
S&P 500 Boards: One-, Five- and 10-Year Trends
Source: Spencer Stuart Board Index,
2016Slide14
Building your board profile14
Fortune
1000
Small public
companies
Private or private
equity-
backed
companies
Non-for-p
rofit organizationsSlide15
Strategy: Getting the call
The
PULL
– leveraging/tapping networks
The PUSH
– profile-building and marketingSlide16
The PUSH – profile-building and marketingExcel at your day job. Build a board profile. Translate your value propositionGet known internally and externallySpeak at events, join relevant association
Get an award: seek application opportunitiesThought leadership: write a relevant business article
Targeted events: platform to promote executives before targeted board influencers
Do your research, have a target list
Tactics & mechanisms of getting the call
Slide17
Tactics & mechanisms of getting the callThe PULL – leveraging/tapping networksLeverage existing relationships as well as personal networksFacilitate introductions to chairs in targeted sectors and organizations
Act on market intelligence (i.e. boards with directors in their late 70s, imminent retirements)
Slide18
Research & InsightsAs the premier firm for board and CEO counsel and recruitment, Spencer Stuart plays an active role inexploring the key concerns of boards and senior management and in the search for innovative solutionsto the challenges they face. Through a range of articles and studies available at spencerstuart.com, weexamine business trends and developments in governance and their implications.Slide19