Each year, Spencer Stuart examines the makeup of the new class of S&P 500 board directors. Here are a few highlights from our 2024 S&P 500 New Director & Diversity Snapshot:
- Top-level and financial expertise continues to be in demand
CEOs and directors with financial backgrounds constitute 59% of the incoming class of S&P 500 directors, and, as a group, the class of 2024 has more directors who are actively employed (52%) than directors who are retired (48%).
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Technology/telecommunications continues to be the most common industry background of new directors
Directors with technology/telecommunications backgrounds account for 19% of new director appointments in 2024.
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The share of next-generation directors rises
The proportion of next-gen new directors (those aged 50 or under) increased after a sharp drop in 2023. They account for 14% of the incoming class of 2024, up from 11% in 2023 but below 2022 levels (18%).
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One-third of new directors are serving on their first corporate board
About a third (34%) of the class of 2024 are first-time directors. Directors in this group are much more likely to be actively employed (67%) than retired.
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Fewer directors left S&P 500 boards this year
The number of independent directors who retired or left board service decreased 8% in 2024 to 374 individuals. These directors departed at an average age of 67.8, with an average tenure of 12.2 years.
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The percentage of diverse new directors continues to decline
This year, 58% of new director appointments have been filled by diverse executives, down from 67% in 2023 and 72% in 2022. Diverse directors are defined by Nasdaq as directors who self-identify as female and/or underrepresented minorities (Black or African American, Hispanic or Latinx, Asian, Native American or Alaska Native, Native Hawaiian or Pacific Islander, or two or more races or ethnicities) and/or LGBTQ+.