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Are Boards Getting Boring? 10% Have At Least Four Directors Over 70
February 26, 2016
The recent resignation and retirement of
Sumner Redstone at CBS and Viacom in a two-day
period brought to light shareholder concerns around board age and tenure. As a growing number of directors nears
mandatory retirement age, investors are rightly concerned about the stability of the companies in which they hold stake.
And as the baby boomer generation continues to age, this issue will perpetuate.
In a recent interview with
C-Suite magazine, Catherine Allen—CEO and Chairman of The Santa Fe Group, member
of multiple public boards, and co-author of
The Retirement Boom—highlighted the challenges that corporate America faces as the
Boomer generation begins to age out of the boardroom naturally.
“I am a big believer in board and personal assessments and in having a certain age limit, although I would
argue if you have an age limit you should have exceptions for skillsets,” Allen said. “You have some
75-year-olds who are savvy and can stay up on anything, but in general boards need to stay fresh or be
refreshed with new members.”
There is no definable age at which any particular board member should retire, but it’s a simple fact that
there are significant numbers of boards primed for turnover in the next few years as their ranks continue
to age. Equilar dug into the data on the number of companies who had board members over the age of 70, and
found some striking figures.
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500: U.S. public companies that have boards with more than four directors over
the age of 70—that accounts for approximately 10% of the companies in Equilar’s
BoardEdge database.
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82: Boards with more than six directors over 70—with average board size checking
in at nearly 11 members, we can reasonably expect more than half the directors on these boards to
retire in the coming years.
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21%: Percentage of Fortune 500 boards that have more than three directors over
the age of 70.
The data in this report is powered by Equilar’s BoardEdge, which not only includes information on 140,000 directors
and executives qualified for board service, but also more than a dozen categories about each board member’s background
and leadership experience. BoardEdge’s defining feature is a networking tool that clearly displays how board members
are connected to each other.
For more information on BoardEdge, or to request a demo, click here.
For more information on Equilar’s research and data analysis, please contact Dan Marcec, Director of Content &
Marketing Communications at dmarcec@equilar.com.