Faced with a diverse and fast-growing range of challenges, S&P MidCap 400 companies show subtle shifts in director appointments and board composition. While overall turnover remains steady — with new directors representing 7% of all board members — several notable trends highlight changes in how mid-cap boards are approaching refreshment.
Key findings from the 2024 report include:
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Appointments of actively employed directors have fallen to 52% of the incoming class, continuing a multi-year decline.
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Fewer next-generation and first-time directors are joining mid-cap boards. Next-gen directors — those aged 50 and younger — account for 10% of all new mid-cap directors, representing a significant drop from last year (19%) and lower than the 14% appointed to large-caps. Directors serving on their first public company board make up 38% of the mid-cap class, down eight percentage points from 2023 and the lowest level since 2021.
- 60% of mid-cap boards’ new directors are diverse, using the Nasdaq definition of directors who self-identify as female, and/or underrepresented minorities and/or LGBTQ+. Among large-cap boards, diverse individuals account for 59% of new directors.
- Formal refreshment mechanisms declined at mid-cap boards. About half (51%) have mandatory retirement ages, down from 53% last year. Tenure limits remain uncommon, present on just 7% of boards, down from 8% last year.