Now in its fourth year, the Greater Philadelphia Board Index provides a unique perspective on the changing leadership of Greater Philadelphia’s largest public companies and insights into the major governance trends and their impact on boards in the region. The 2012 edition examines the data and trends in board composition, board practices and director compensation for the 42 publicly traded companies in the region with revenues in excess of $1 billion. These findings provide a unique perspective on the evolution of governance reform and its impact on boards in the region.
Highlights of this year's index include the following:
- Board size remains consistent. The average size of Greater Philadelphia boards is 9.9 directors, the same as 2011. S&P 500 boards have an average of 10.7 directors.
- Uptick in board independence. The majority (85 percent) of boards in the region are independent, up from 82 percent last year.
- Decline in the nonexecutive chairmen role. In 2011, 44 percent of companies in the Greater Philadelphia region had nonexecutive chairmen. This year, only 33 percent of companies in the region have nonexecutive chairmen. However, the vast majority (92 percent) of companies in the region that do not split the role of chairman and CEO do have a lead or presiding director.
- Local boards mirror national trend toward annual director elections. The share of S&P 500 boards with one-year director terms has more than doubled from 40 percent a decade ago to 83 percent today. The region is following this national trend, with 57 percent of Greater Philadelphia boards opting for one-year terms, up from 53 percent in 2011, 50 percent in 2010 and 44 percent in 2009.
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