The 2019 UK Spencer Stuart Board Index reveals that the UK’s top 150 listed companies are making concerted efforts to reinvigorate their boards, appointing a record number of new non-executive directors this year. The class of 2019 comprises more new faces, more women and improving levels of ethnic diversity. For example, a record 72% of FTSE 150 boards appointed a new non-executive director and for the first time the majority of these new directors were women. Women now represent 31% of all directors in the top 150 FTSE companies and nearly 43% of non-executives — both new milestones.
In addition to looking at trends in board composition, the Board Index also examines director remuneration and governance practices such as board evaluation. Among the noteworthy findings, both chairs an CEOs are less likely than ever before to sit on another listed company board — a reflection of the increased workload involved as well as an early indication that concerns about ‘overboarding’ are starting to take effect.
↑ — denotes a significant change from prior years.
New non-executive directors
|
 72%
of boards appointed at least one new non-executive director |
 15%
of all directors were appointed in past 12 months |
 35%
have a financial services background
|
diversity among the new non-executive directors
|
2019 |
2018 |
2017 |
2016 |
| Women |
52.7% ↑ |
43.2% |
38.8% |
33.7% |
| Foreign |
41.2% |
41.9% |
36% |
41% |
| BME1 |
11.5% |
9.7% |
13.1% |
7.7% |
1 Black and minority ethnic. 8.1% of all directors in the top 150 FTSE companies are BME.
first-time directors
57%
are women |
52%
are foreign |
13%
are BME |
8%
have an Oxbridge degree |
53
is the average age |
Remuneration and fees
remuneration of directors
|
2019 |
2014 |
2009 |
5 year change |
10 year change |
| Average non-executive retainer |
£69,238 |
£61,920 |
£54,000 |
11.8% |
28.2% |
| Average (part-time) chair retainer |
£404,544 |
£351,977 |
£312,000 |
14.9% |
29.7% |
chair fees (part-time only), segmented by ranking group (ftse 150, £000)
| 1 to 10 |
|
|
|
| 11 to 20 |
|
|
|
| 21 to 30 |
|
|
|
| 31 to 40 |
|
|
|
| 41 to 50 |
|
|
|
| 51 to 100 |
|
|
|
| 101 to 150 |
|
|
|
non-executive director fees, segmented by ranking group (ftse 150, £000)
| 1 to 10 |
|
|
|
| 11 to 20 |
|
|
|
| 21 to 30 |
|
|
|
| 31 to 40 |
|
|
|
| 41 to 50 |
|
|
|
| 51 to 100 |
|
|
|
| 101 to 150 |
|
|
|
Other governance measures
board committees
|
Audit committee |
Remuneration committee |
| Female chairs |
24% |
52% |
| Female members |
47% |
39% |
| Average fees for committee chairs |
£24,731 |
£21,562 |
tenure
 4.1years
Average tenure of non-executive directors |
 4.9years
Average tenure of both chairs and CEOs |
external commitments
 32%
of chairs do not sit on another listed company board |
72%
of CEOs do not sit on another listed company board |
board evaluations
|
37.3%
External
61.3%
Internal
1.4%
None
|