A recent Spencer Stuart Index, an annual study that examines the state of corporate governance among the S&P 500, reports how boards have changed in the past 10 years. Among the key findings:
- Majority voting: 65 percent of boards report that they require directors who fail to secure a majority vote from shareholder to offer their resignations. This is up from 56 percent last year.
- Director term limits: One-year terms for directors are now the norm in 68 percent of S&P 500 boards, compared to 38 percent 10 years ago.
- Independent leadership: Half of all boards have only one insider, the CEO, up from 44 percent last year. Thirty-seven percent split the chairman and CEO roles, versus 20 percent a decade ago.
Of the 333 independent directors in 2009, just over one-quarter are active CEOs, COOs, or chairmen, down from 53 percent in 1999. Retired CEOs and leaders of divisions and functions now make up 17 percent and 21 percent of the new director pool.