Spencer Stuart: Pace of Board Evolution
In a recent article Spencer Stuart compared the U.K. and U.S. board environment. They found that although they share many similarities including a shareholder-centric approach. There are differences between U.S. and U.K. boards in terms of how they are able to adapt to change.
The U.K. tends to be more aware of succession issues than their U.S. counterparts. The reason is because of tenure limits imposed by the U.K. Combined Code. It is often common for directors to leave boards after less than six years. Once appointed to a board, U.S. directors typically serve until they reach retirement age.
The tenure limits in the U.K. allows for more mobility among the non-executive population in the U.K. Board chairs are able to manage director succession and provide opportunities to bring diverse skills and fresh perspectives into the boardroom. The U.S. has far less turnover and longer average director tenure. This is largely due to the absence of tenure limits and trend toward later retirement.
The full article is published on Spencer Stuart’s website. Read the full report.