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2019 FTSE 150 Board Trends

2019 FTSE 150 Board Trends

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)

2018

2019

1 to 10
788
773
11 to 20
678
700
21 to 30
618
637
31 to 40
498
473
41 to 50
313
352
51 to 100
372
341
101 to 150
259
280

non-executive director fees, segmented by ranking group (ftse 150, £000)

Retainer

Total fee

1 to 10
98
161
11 to 20
88
162
21 to 30
85
121
31 to 40
75
98
41 to 50
71
93
51 to 100
64
80
101 to 150
60
72

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

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)

2018

2019

1 to 10
788
773
11 to 20
678
700
21 to 30
618
637
31 to 40
498
473
41 to 50
313
352
51 to 100
372
341
101 to 150
259
280

non-executive director fees, segmented by ranking group (ftse 150, £000)

Retainer

Total fee

1 to 10
98
161
11 to 20
88
162
21 to 30
85
121
31 to 40
75
98
41 to 50
71
93
51 to 100
64
80
101 to 150
60
72

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