According to Spencer Stuart's sixth annual Minnesota Board Index, active chairmen, presidents, chief executive officers and chief operating officers are declining as a source of new independent directors for Minnesota's 30 largest companies. The study found that 43 percent of new directors of these companies were active C-level executives, compared to last year when more than half of new directors held these positions.
The experience of Minnesota boards follows a national trend. Active senior-level executives accounted for only 32 percent of new directors recruited by S&P 500 boards. By comparison, more than half of new directors
held these positions five years ago.
"Given the demands of board service today -- including the increased time commitment, the additional scrutiny of boards and ongoing corporate governance requirements stemming from the Sarbanes-Oxley Act -- it's not surprising that it is now much harder to recruit C-level executives to a board," said Susan Boren, head of Spencer Stuart's Minneapolis/St. Paul office. "As active chairmen, chief executive officers, presidents and chief operating officers are less able and less willing to accept outside directorships, boards have turned to new prospects, such as retired or up-and-coming executives."
See full Press Release.
Also visit Spencer Stuart for access to Report.
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