This report presents the major findings of the 10th Annual Corporate Board Effectiveness Study conducted by the Center for Effective Organizations at the University of Southern California’s Marshall School of Business and Heidrick & Struggles, a leading executive search and leadership consulting firm.
Incorporating responses from 768 directors at approximately 660 of the 2,000 largest publicly traded companies in the U.S., this in-depth study of board directors is the largest U.S. study of its kind. Three percent (3%) of the respondents are CEOs/chairs, 3% inside directors, 74% outside directors, 4% CEOs/non-chairs, 5% non-executive chairs, 9% lead directors, and 3% other1. These directors serve on an average of 2.5 boards. Directors who sit on more than one board were asked to complete the survey for the largest U.S. company on which they serve as a director.
We have organized the survey results into five sections. The first four address areas that interact to give each board its character: roles and effectiveness, composition and structure, processes, and dynamics. The section on board dynamics also includes data that reflects directors’ perception of change in board dynamics and practices as a result of new legislation, SEC rules, and stock exchange guidelines. A fifth section deals with the issue of executive compensation. The report concludes with some observations about the implications of the data.
See full Study, in pdf format.
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