Our insights about the market for board talent across S&P 500, the U.S. Tech Industry, and early stage growth companies as well as a cross section of boards interested executives based on the Spencer Stuart Board Index, the U.S. Tech Board Index, and a SurveyMonkey survey put together as input for #WhyBoardsMatter, a joint presentation from Spencer Stuart and Kleiner Perkins.
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Why Boards Matter: Building and Developing a World Class Board of Directors
1. "Why Boards Matter: Building and
Developing a World Class Board of Directors”
James M. Citrin
Leader CEO Practice
Spencer Stuart
1
2. INTRODUCTION
This presentation was done in connection with the program, “Why Boards
Matter: Building and Developing a World Class Board of Directors,” co-hosted by
Spencer Stuart and Kleiner, Perkins, Caufield and Byers. To set the stage we
reviewed:
• Spencer Stuart’s strategic partnership with Kleiner Perkins
• Our Board Practice’s market leading presence
• Approximately 700 director searches globally
42 percent of Fortune 100
One-half of assignments were for companies under $1 billion in revenue
• State-of-the-art governance expertise and thought leadership
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3. INPUT FOR THIS PRESENTATION
30 years
SURVEYMONKEY SURVEY
Boards Interested
Executives
42
S&P 500
Board Demographics
Trends
⋆
➲
➚
✓
SPENCER STUART BOARD INDEX
3
SPENCER STUART U.S.
TECHNOLOGY BOARD INDEX
4 years
Top 200 U.S. Tech Companies
Board Demographics
Trends
⋆
➲
➚
✓
12. 68%
59%
Positive TSR
with Board
Experience
Positive TSR
without
Board
Experience
FIRST-TIME CEOS WITH PUBLIC COMPANY
BOARD EXPERIENCE
2012-2015
INTERNAL FIRST-TIME CEOS EXTERNAL FIRST-TIME CEOS
36%
64%
Without Board
Experience
With Board
Experience
47%
53%
Without Board
Experience
With Board
Experience
78%
20%
Positive
TSR with
Board
Experience
Positive
TSR without
Board
Experience
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14. MINORITIES AS A PERCENTAGE OF DIRECTORS
TOP-200 BOARDS IN THE S&P 500
76%
9%
8%
5%
2%
All non-minorities
African-American
Non-U.S.
Hispanic/Latino
Asian
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15. FEMALE REPRESENTATION ON BOARDS
S&P 500 AND U.S. TECH BOARD INDEX
• In the S&P 500 female and male CEOs have different
board compositions
28% of directors are women at companies with a female CEO
19% of directors are women at companies with a male CEO
Technology company boards with at least one female
director increased from 72% in 2014 to 75% in 2015
Technology boards significantly trail the S&P 500 in
female representation; 97% of S&P 500 boards have at
least one female director
Women represent 14% of the total number of directors on technology
boards versus 19.8% of S&P 500 directors
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16. "Why Boards Matter: Building and
Developing a World Class Board of Directors”
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