Knowledge Center: Publication
Chief Executive Officer & Board of Directors
Generational dynamics: How boards tackle succession6/10/2015 Bonnie W. Gwin
This year’s Heidrick & Struggles Board of Directors Survey, the fifth in an ongoing series, found that boards are ambivalent about using age limits as a trigger for renewal, with only 37% of directors implementing such limits, despite more than half saying they supported them in our 2013 survey. Meanwhile, among boards that have age limits, some 15% of directors admit they have made exceptions to them in the recent past.
Refreshing a board is not an easy task, and there is little consensus on how to get there. Tenure limits, age limits, and the use of board assessments are all viable tools to assist boards in planning succession and rejuvenating themselves. The key, however, is to ensure a timely source of fresh perspectives that matches the company’s long-term strategic challenges.