Board pros.
Author | Rock, Robert H. |
Position | LETTER FROM THE CHAIRMAN |
THE COMPOSITION of boards of directors has been changing. Most notably, women are increasingly entering the boardroom. DIRECTORS & BOARDS, which tracks board appointments, has been a spike in female directors. Over the past decade, the percentage of women recruits has gone from low single digits to 20%. In the past eight quarters, female appointees have ranged from 20% to almost 40% percent. Like many of the boards upon which I serve, nominating committees are looking to hire women directors and are specifiying this preference to their consultant.
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In contrast, the makeup of boards has seen relatively little increase in the number of minorities. Given their growing numbers, in particular Hispanics, who according to the 2010 census now comprise 16% of our nation, boards should see a significant increase in minority representation. Also given the increasing application of technology, younger directors may begin to appear more often on boards. As of the first quarter 2011, over half of American adults are on Facebook, though the percentage is much less for those over 50 and even fewer for those over 60, the age brackets that still dominate boards.
With this increase in boardroom diversity has come an increase in the number of professional directors, board members who spend most of their time and earn much of their income from their board roles. Some of them are retired CEOs of major public institutions, but most worked as senior managers and are now self-employed as consultants.
Over the past decade, professional directors have become ubiquitous in boardrooms. The great majority of these directors have extensive work experience, and many actively hone their governance backgrounds by participating...
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