Director Dialogue: Board Composition
Several factors have combined to make board composition a priority for a growing number of public companies. According to recent NACD survey results, the rate of director turnover on public-company boards has been on the rise over the past several years—nearly doubling since the financial crisis. Additionally, investors across the spectrum have developed a keen interest in board composition and director skill sets. As one major institutional shareholder told NACD, “The world is changing—we want to understand what boards are actually doing to respond. What capabilities [do companies] need to be successful, and how are [they] building those [capabilities] on the board?”
NACD and McGladrey held a series of roundtable meetings in 2014 that brought together more than 40 directors to discuss issues and challenges related to board composition.