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Ross Kerber: US Boards seek experience in dealing with AI and tariffs

New data indicates that recruiters are returning to the basics when it comes to hiring directors for top U.S. firms. Boards want experienced people to help them tackle issues like artificial intelligence or President Donald Trump’s tariffs. These trends are also a departure from the focus boards used to have on recruiting younger directors or those with more diverse backgrounds. According to a report released on Tuesday by Spencer Stuart, the executive search firm and leadership advisory, incoming directors of S&P 500 companies are averaging 59.1-years-old. This continues a trend that has been increasing for years.

In addition, 30% of the new directors are CEOs who are currently active or have retired, and 29% come from a financial background. These figures remain unchanged since 2024. Julie Hembrock Daum is the chair of Spencer Stuart’s North American Board Consulting Practice. She said, "We are going back to those people who have stated that they really want CEO experience." Most companies would love to have an active CEO in the board, but it's becoming harder and harder for them to get one. This is because big investors are limiting public company CEOs’ outside commitments.

Experience is important in determining how companies respond to AI, and Trump's tariffs.

Daum stated that the boards of companies in industries such as hospitality and construction also deal with pressures on their employees, including rising costs of living, particularly housing costs, as well more aggressive immigration enforcement.

3M is one company that has added an independent director as a CEO from outside this year. David Bozeman was appointed by C.H. Robinson Worldwide. Meta Platforms has also added Exor CEO John Elkann as well as Patrick Collison CEO of privately-held Stripe to its board.

This article was not immediately commented on by 3M or Meta.

NEW LOOK AT DEMOGRAPHICS

Corporate boards, once considered to be purely ceremonial, have gained more attention in the wake of the financial crisis. Board committees have been pressed into taking on stronger oversight in areas like executive compensation and information security.

After the #MeToo movement and Black Lives Matter, boardroom demographics got a new look. Many companies have added disclosures regarding directors' self-identified racial, gender and sexual preferences.

Earlier this decade, advocates used data to pressure companies to include more women and minorities on their boards. This effort led to more diverse boards. However, momentum has slowed down since the recent backlash on diversity. Spencer Stuart reported that 38% of the 374 independent directors appointed by S&P500 companies in this year were women. This is down from 42% and 47% respectively in 2024. This year, minority directors accounted for 17% of the class. That's down from 26% and 22% respectively in 2024.

The overall representation of corporate boards is largely the same as it was in 2024. Women now make up 35% and minorities, 24%. Barry Lawson Williams has been a long-time corporate diversity advocate. He said that he's noticed a similar drop in demand for candidates who are underrepresented. He noted that some boards do not replace minority candidates when they leave. Williams said in an interview that he believes the board should be refreshed or rotated to allow for greater diversity. This will also recognize that skills sets change over time. Daum also agreed that some boards do not replace directors. This is why, in 2025, the number of independent directors dropped from 406 to 374.

When they added diverse candidates, the boards tended to grow. She said that when there was a turnover of staff, the board did not replace them.

The average compensation of non-employee director was $336.352 in 2016, up from $272.497 last year and $327.096 the year before.

(source: Reuters)