North America’s board refreshment challenge
In the US, the board refreshment process is under scrutiny yet remains focused on retirement age limits. LGIM suggests a better way for US companies to refresh their boards.
Board refreshment is a key driver of a well-functioning board and it should be undertaken thoughtfully and regularly in order to create the best board
Board refreshment and director succession planning are key board tasks and the foundations of a well-functioning board. A board should remain relevant and diverse in terms of perspective, experience and skill sets.
This ensures that the board can respond to risks and opportunities in order to sustain profit growth, maximize long term returns and guide the company successfully into the future.
A long-tenured board can be an indication of a poorly managed succession planning process and a lack of refreshment of skills and perspectives which then calls into question the quality of its members and the effectiveness of the board as a whole.
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