Board oversight has never been more critical. The past several years have brought unprecedented shifts to the global business landscape and ushered in the dawn of a new paradigm in corporate management. As a result, companies today are grappling with heightened challenges around risk management and geopolitical turmoil, making it increasingly difficult to stay competitive.
Our 2024 Mexico Spencer Stuart Board Index provides insights into the board and governance practices, board composition and director compensation for some of the most influential companies in Mexico. For our analysis, we consolidated information for 113 companies, their board members and board practices from their 2023 annual reports and other public sources to provide the most accurate, complete and updated figures.
Here are a few highlights from this year’s index:
Average board member has significant functional experience and long tenure
The average tenure for board members is 12 years, up from 11 years in 2018. This tenure length is considerably higher than the international average of 5.45 years. Our research also found that 43% of board members have served for more than 10 years, and 21% have served for more than 20, signaling that continuity is important. However, longer tenure means fewer opportunities for new board members and finding more diverse voices.
Boards members need industry and senior leadership experience
A well-rounded board with seasoned members enhances overall organizational performance and stakeholder confidence. Indeed, skilled board members bring valuable industry knowledge and strategic insights that can help them shape the company’s direction, navigate complex challenges, foster innovation and ensure accountability. Mexican board members bring an array of background experiences which have shaped their professional careers: 34% worked in business administration, 22% in finance, banking and financial services and 13% in industrial.
The share of women on Mexican boards is increasing
From 2018 to 2023, the representation of women on Mexican boards increased by 7 percentage points (6% to 13%), suggesting that companies are starting to adapt to the increasing demands for diversity amid changing, dynamic and flexible societies. Encouragingly, the number of boards without women has decreased: 30% of boards have no female members compared with 52% in 2018, and 25% have just one female member compared with 32% in 2018.
Mexican board members are 63 years old on average
The ages of Mexican board members range from 27 to 95 years old, with the average age being 63 years — four years older than in 2018 — surpassing the international average (59). Notably, 75% of board seats are occupied by members between 51 and 95 years old, suggesting a preference for members with lengthier career experience. Only 13% of board seats are held by members aged 50 and younger. With directors skewing younger, boards could miss out on different viewpoints and the valuable experiences of younger members.