Now in its second year, the U.S. Financial Services Board Index examines the data and trends in board composition, board practices and director compensation for the 79 S&P 500-listed financial services firms, providing a unique window into the governance trends of the largest financial services companies in the United States. Among the trends highlighted in this year's index:
- Boards are placing more restrictions on the CEO’s outside board commitments. The average limit on outside corporate directorships for CEOs was stable at 1.6, but the percentage of financial services firms imposing numerical restrictions on the CEO’s outside board participation almost doubled from 6% in 2010 to 11% in 2011.
- Boards are meeting less frequently. The average number of board meetings decreased to 9.4 in 2011 from 10.9 in 2010.
- Fewer new directors joined the boards of financial services firms. Forty-five new independent directors joined S&P 500 financial services boards in 2011 compared to 57 in 2010.
- The new director profile has evolved, with more women and tech executives joining boards. Of the new directors who joined a financial services board in 2011, 24% were female compared with 18% in 2010. High tech/telecommunications became the second most represented industry background among new directors, having registered an eightfold increase from 2% of total representation in 2010 to 16% in 2011.
- Average director compensation has increased. The average total director compensation for S&P 500 financial services firms increased by 7% from $187,979 in 2010 to $200,519 in 2011.
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