Director Data 4th Quarter
By Directors and Boards

CEO Trends

Record number of CEOs reached retirement age

• In 2017, nearly 17% of sitting CEOs reached retirement age (64 or older). That’s the highest rate since we began tracking successions.

Outsider CEOs gained steam

• Outsiders filled around 44% of vacancies. In both 2015 and 2016, they filled about 14%.

The best CEOs left less often

• The CEO succession rate at better-performing companies declined to about 7%, the lowest since 2002. This likely reflects pressure that new regulations and shareholders are putting on companies.

(Source: CEO Succession Practices: 2018 Edition. The Conference Board and Heidrick & Struggles)

Are companies dropping the reputation ball?

Roughly half of CEOs and board members acknowledge that their organizations lack the ability to identify reputation impacting events, analyze risks, and forecast impacts on brand and reputation. Separately, 59% of leaders lack a plan to develop or acquire tools to address reputation risks.

(Source: “Illuminating a path forward on strategic risk,” Deloitte)

 

 

 

Independent board leadership

In a review of S&P 1500 companies, independent board chairs have been experiencing the fastest increase since 2000. The study also found that women are less likely to be a board leader.

(Source: “Today’s independent board leadership landscape,” EY Center for Board Matters)

Cybersecurity & Risk

In the “Cybersecurity Disclosure Benchmarking” report, EY’s Center for Board Matters took a look at the risk and strategy behind voluntary cybersecurity statements from Fortune 100 companies. Of those companies:


Issue: 
2018 Fourth Quarter

Other related articles

  • My Board Journey: JANET KERR, Director, La-Z-Boy, Inc., Tilly’s, Inc., AppFolio.
    Published April 09, 2019
    By Eve Tahmincioglu
    Janet Kerr, Vice-Chancellor of Pepperdine University and Professor Emeritus of Law at Pepperdine University School of LawWhat was your first corporate board seat appointment and how did that come ...
  • Assessing Board Performance
    Published April 09, 2019
    By Sabine Dembkowski and Lauren E. Smith
    The secret sauce is in focusing on director strengths and skills.The need for high-performing and accountable board leadership is ever-increasing as the complexities of the business environment contin ...
  • Comp Committees Should Broaden Tech-Ethics Scope
    Published April 09, 2019
    By Stephen Charlebois and Ross Perry
    A Focus on AI and Machine Learning.Across all industries, technology has become a key driver of growth and profitability for many organizations. Old industrial companies have been replaced by those wi ...
  • Boards Need to Push ESG Out of Silos
    Published April 09, 2019
    By Dennis T. Whalen and Jose R. Rodriguez
    Prioritizing environmental, social and governance matters requires sustained effort.Environmental, social, and governance (ESG) issues are increasingly factored into corporate performance.Many investo ...