Global Boards in a Time of Turbulence
The report explores how boards are responding to unprecedented external pressures – from geopolitical instability and AI disruption to regulatory change and social upheaval. Boards must now balance traditional oversight with an increasingly complex and fast-moving risk environment.
Key Highlights
Board Composition
Board size has remained stable (typically 9–11 members), despite increased responsibilities.
Germany stands out with a larger average board size (16), due to codetermination laws requiring worker representation.
Boards increasingly rely on external experts to fill knowledge gaps quickly without expanding formal board size.
Independence
Majority of countries now have boards where most directors are independent.
Only Brazil, Chile, Spain and Turkey have fewer than 50% independent directors.
Independence is essential for objectivity and resilience in times of crisis.
Tenure & Board Refreshment
Average global board tenure is 5.4 years, but this varies:
Finland: 4 years (lowest)
Mexico: 12 years (highest)
Lack of term limits and slow turnover can hinder board agility and renewal.
The report emphasises the need for boards to proactively manage succession and refreshment to remain aligned with evolving business needs.
First-Time Directors
In 2024, there was an uptick in first-time board appointments in countries like the USA, Ireland, Turkey and Italy – suggesting growing openness to fresh perspectives.
Conclusion
To stay effective in an increasingly volatile world, boards must:
Prioritise independence, agility and diversity of thought.
Ensure board composition evolves with strategy and risk.
Be courageous in refreshing talent and fostering dynamic governance cultures.
Read the full article here.