Beyond the C-Suite: Trends in Director Skill Sets
Diligent Institute looked at the expertise backgrounds of newly appointed directors in 2021 to see which skill sets were entering the boardroom.
Key findings
- The share of newly appointed directors who come from a traditional CEO/CFO/COO background is declining – dropping from 59.4% to 56.0% since 2019.
- Over the same time period, the share of newly appointed directors who come from nontraditional backgrounds has increased from 13.0% to 18.9%.
- The group of newly appointed directors with nontraditional backgrounds is split almost evenly along gender lines.
- However, newly appointed directors from CEO/CFO/COO backgrounds are twice as likely to be men, while women represent the majority of new appointments in technology and marketing, and the vast majority of new appointments in HR and ESG.
Boards and governance
Are new skill sets entering the boardroom?
Diligent Institute analyzed newly appointed directors in the first half of 2021 to understand more about the types of expertise new leaders are bringing to the board.
What skill sets do newly appointed U.S. directors bring?
The share of directors bringing CEO/COO/CFO experience has declined from 61.1% in 2019 to 58.0% in 2021.
What skill sets do U.K. directors bring?
Interestingly, the picture in the UK is mixed: new appointments from traditional backgrounds rose slightly between 2019 and 2020, then fell in the first half of 2021 to 57.5%.
What skill sets to new Australian directors bring?
The most dramatic shift has occurred in Australia, which has dropped from 59.1% traditional board appointments in 2019, to 41.8% in 2021 – a 30% decline.
Featured content
[rt_reading_time postfix=”minute read” postfix_singular=”minute read”]
Inform
State of Cyber Awareness in the Boardroom
NightDragon, Diligent and our coalition of industry leaders analyzed the leadership…
[rt_reading_time postfix=”minute read” postfix_singular=”minute read”]
Certifications
AI Ethics & Board Oversight Certification
Learn how to govern AI ethics responsibly in Diligent Institute’s AI Ethics & Board…
[rt_reading_time postfix=”minute read” postfix_singular=”minute read”]
Inform
Sustainability in the Spotlight: Has ESG Lost Momentum in the Boardroom?
Diligent Institute and Spencer Stuart surveyed nearly 1000 board members on their…
[rt_reading_time postfix=”minute read” postfix_singular=”minute read”]
Inform
Board Diversity Gaps 2022
Diligent Institute and 22 other partner organizations provide in-depth insights into how…
Contacting Diligent Institute
Want to learn more?
Subscribe to Diligent Institute to hear more about our research, education programs and events. Contact us to answer any questions you have!
