NACD Inside the Public Company Boardroom Survey Report Finds Gender Diversity Ticking Upward
WASHINGTON, DC (January 25, 2023) — The National Association of Corporate Directors (NACD), the authority on boardroom practices representing 23,000+ board members, today released its 2022 Inside the Public Company Boardroom report, which offers data-backed insights into the current state of the American boardroom. Based on data gathered by NACD partners Pearl Meyer, Main Data Group, and MyLogIQ, the report creates a snapshot of what the boards of Russell 3000 Index companies looked like in 2022.
"By producing this annual report, we provide valuable insight into the critical shifts and trends impacting boards today and what we can expect to see in 2023," said Peter Gleason, president and CEO of NACD. "As boards continue to lean into technology and risk-based approaches, NACD will continue to ensure that our certifications, resources, and tools are responsive to member needs and tailored to help directors meet the challenges of the environments in which they operate."
Key Findings from the 2022 Inside the Public Company Boardroom Report:
The percentage of board seats occupied by women has slowly but consistently increased over time.
This year, women accounted for 41 percent of new director appointments and only 17 percent of those departing. With increased emphasis on gender balance on the board, this trend could accelerate in the near future.
Source: NACD 2022 Inside the Public Company Boardroom (p. 4)
Board independence has changed little relative to last year, though it has increased gradually over time. In 2020, only 15 percent of boards in the Russell 3000 had compositions where 90 percent of board members were independent directors. This increased to 17 percent last year and continued to increase to 18 percent this year.
Board use of nonstandard committees such as risk, technology, and sustainability has increased over the last two years.
A higher percentage of directors among this year's newly appointed directors have technology skills (as defined in director-disclosed biographies). Among those finishing their terms, however, are more directors with financial and strategic vision skills.
Year over year, there is little change in the tenure of those in board leadership positions: board chair; lead director; and audit, compensation, and corporate governance committee chairs. However, across a period of three years, the tenure of those serving in the board chair role has slowly decreased.
Source: NACD 2022 Inside the Public Company Boardroom (p. 8)
The National Association of Corporate Directors (NACD) is the premier membership organization for board directors who want to expand their knowledge, grow their network, and maximize their potential.
As the unmatched authority in corporate governance, NACD sets the standards of excellence through its research and community-driven director education, programming, and publications. Directors trust NACD to arm them with the relevant insights to make high-quality decisions on the most pressing and strategic issues facing their businesses today.
NACD also prepares leaders to meet tomorrow's biggest challenges. The NACD Directorship Certification® is the leading director credential in the United States. It sets a new standard for director education, positions directors to meet boardroom challenges, and includes an ongoing education requirement that prepares directors for what is next.
With an ever-expanding community of 23,000+ members and a nationwide chapter network, our impact is both local and global. NACD members are driven by a common purpose: to be trusted catalysts of economic opportunity and positive change—in business and in the communities we serve. To learn more about NACD, visit www.nacdonline.org.
About Pearl Meyer
Pearl Meyer (www.pearlmeyer.com) is the leading advisor to boards and senior management on the alignment of executive compensation with business and leadership strategy, making pay programs a powerful catalyst for value creation and competitive advantage. Pearl Meyer's clients stand at the forefront of their industries and range from emerging high-growth, not-for-profit, and private companies to the Fortune 500. The firm has offices in Atlanta, Boston, Charlotte, Chicago, Houston, Los Angeles, New York, and San Jose.
About Main Data Group
Main Data Group is a provider of executive compensation benchmarking and corporate governance analytics. Its mission is to empower boards and executive compensation professionals with comprehensive total rewards and corporate governance information in an easy-to-use online service and via custom data research. For more information, contact email@example.com.
MyLogIQ (www.mylogiq.com) provides 360°public company intelligence through our CompanyIQ Answer Desk. We offer an unrivaled AI-powered solution for public company disclosure, compliance, and investor communications benchmarking with real-time access to research and analytics on one platform.