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2020 Spencer Stuart Consumer Sector Snapshot

Boards of consumer companies in the S&P 500 index tend to be slightly younger and more gender diverse than S&P 500 boards. In other respects, governance practices and structures of consumer companies — consisting of 95 companies in the S&P 500 consumer staples and consumer discretionary primary sectors — are comparable to S&P 500 boards.

  • The average age of independent directors on consumer boards is 61.8 years, lower than the 63.0 year average for S&P 500 boards.
  • The youngest average age of a consumer board is 51.8 years, the oldest is 71.2.
  • Consumer boards average 10.8 directors, compared to 10.7 members on S&P 500 boards.
  • Eighty-four percent (84%) of consumer directors are independent, versus 85% of S&P 500 directors.
  • The average board tenure of independent directors on consumer boards is 8.0 years, just above the 7.9 average for S&P 500 boards.
  • The longest-tenured consumer board averages 15.6 years.

Diversity

Gender diversity of consumer boards is the highest of all primary sectors in the S&P 500 index, with women representing 31% of all consumer board members in 2020, compared to 28% of S&P 500 directors.

Every S&P 500 company has at least one female director. Ninety-five percent (95%) of the S&P 500 index have at least two female directors, and two-thirds (67%) of S&P 500 companies have three or more female directors. In contrast, three-quarters (76%) of the consumer companies have three or more women directors. Thirteen S&P 500 boards are composed of at least 50% women; six are consumer companies.

Representation of Women Directors on Consumer Company Boards

When it comes to race/ethnic diversity of the boardroom, 21% of directors of 47 consumer companies in the top 200 companies are minorities (defined as Black/African American, Hispanic/Latinx and Asian), slightly above the 20% average for the S&P 500 index. The diversity breakdown of consumer boards generally aligns with the S&P 500: 10% Black/African Americans (compared to 10% of S&P 500 directors); 6% Hispanic/Latinx (compared to 4% S&P 500); and 5% Asian (compared to 5% S&P 500). According to the U.S. Census Bureau, about 40% of the U.S. population is estimated to be a minority, including 18.5% Hispanic/Latinx, 13.4% Black/African American, 5.9% Asian.

New independent director backgrounds

Forty-four companies — 46% of the surveyed S&P 500 consumer companies, the lowest percentage of all S&P 500 primary sectors — added at least one director over the past year. Appointees averaged 56.0 years of age, lower than the 57.8 average for all independent directors joining S&P 500 boards and the second lowest average of all sectors in the S&P 500. First-time directors represented 27% of directors joining consumer boards — slightly lower than the 28% overall average for the S&P 500.

Diverse directors constituted 62% of the 66 directors joining consumer boards over the past year: 48% are women and 14% are minority men, the second-highest percentage of S&P 500 primary sectors. In comparison, 59% of directors joining the S&P 500 index in 2020 are diverse, including 47% women and 12% minority men.

More than half (55%) of the directors joining consumer boards are actively employed, compared to 49% of independent directors joining S&P 500 boards. The sector’s incoming class of division/subsidiary executives is the highest percentage of all S&P 500 primary sectors. Most (90%) of the additions to consumer boards in 2020 are current or former CEOs (35%); finance/accounting professionals (23%); division/subsidiary heads (14%); line/functional leaders and other top corporate executives (9% each).

2020 Consumer 2020 S&P 500
CEOs35%29%
Active17%13%
Retired18%16%
Chairs / presidents / COOs9%6%
Active5%3%
Retired5%3%
Line and functional leaders9%16%
Division / subsidiary presidents14%7%
Finance / accounting executives23%27%
Financial executives / CFOs / treasurers17%14%
Investment managers / investors5%8%
Bankers / investment bankers0%4%
Public accounting executives2%1%
Academics / nonprofit executives0%3%
Consultants5%3%
Legal 5%2%
General counsel5%2%
Lawyers0%0%
Others2%7%
Government / military2%5%
Others0%2%

Board leadership

The chair and CEO roles are separated at 61% of consumer boards — higher than the 55% average for the S&P 500 index and the second highest of all S&P 500 primary sectors. Executive chairs are more common on consumer boards — 20% versus 13% for the S&P 500. Consumer boards, on average, have a slightly lower percentage of independent board leaders: 33% have independent chairs (compared to 34% of the S&P 500), and 71% have an independent lead director (compared to 73% of the S&P 500).

Board organization and process

Compared to the S&P 500 index, relatively fewer consumer companies have a classified board and slightly more have a mandatory retirement age for directors. Other aspects of consumer board governance processes and structures align with averages for the S&P 500 index.

2020 Consumer 2020 S&P 500
Classified board7%10%
Board meetings (avg #)7.47.9
Board committees (avg #)44.2
Audit committee
Size (avg #)4.34.4
Meetings (avg #)8.18.2
Compensation committee
Size (avg #)4.14.3
Meetings (avg #)5.75.9
Nominating / governance committee
Size (avg #)4.54.4
Meetings (avg #)4.54.5
Mandatory retirement73%70%
Retirement age (avg)73.173.6

Editor's note: Data in tables and charts may not total 100% due to rounding.
 

Consumer Sector Companies

Advance Auto Parts
Altria Group
Amazon.com
Aptiv PLC
Archer-Daniels-Midland Company
AutoZone
Best Buy Co.
Booking Holdings
BorgWarner
Brown-Forman Corporation
Campbell Soup Company
CarMax
Carnival Corporation
Chipotle Mexican Grill
Church & Dwight Co.
Colgate-Palmolive Company
Conagra Brands
Constellation Brands
Costco Wholesale Corporation
Coty
D.R. Horton
Darden Restaurants
Dollar General Corporation
Dollar Tree
Domino's Pizza
eBay
Expedia Group
Ford Motor Company
Garmin
General Mills
General Motors Company
Genuine Parts Company
H&R Block
Hanesbrands
Harley-Davidson
Hasbro
Hilton Worldwide Holdings
Hormel Foods Corporation
Kellogg Company
Kimberly-Clark Corporation
Kohl's Corporation
L Brands
Lamb Weston Holdings
Las Vegas Sands Corporation
Leggett & Platt
Lennar Corporation
LKQ Corporation
Lowe's Companies
Marriott International
McCormick & Company
McDonald's Corporation
MGM Resorts International
Mohawk Industries
Molson Coors Brewing Company
Mondelēz International
Monster Beverage Corporation
Newell Brands
NIKE
Nordstrom
Norwegian Cruise Line Holdings
NVR
O'Reilly Automotive
PepsiCo
Phillip Morris International
PulteGroup
PVH Corporation
Ralph Lauren Corporation
Ross Stores
Royal Caribbean Cruises Ltd.
Starbucks Corporation
Sysco Corporation
Tapestry
Target Corporation
The Clorox Company
The Coca-Cola Company
The Estee Lauder Companies
The Gap
The Hershey Company
The Home Depot
The J.M. Smucker Company
The Kraft Heinz Company
The Kroger Co.
The Procter & Gamble Company
The TJX Companies
Tiffany & Co.
Tractor Supply Company
Tyson Foods
Ulta Beauty
Under Armour
V.F. Corporation
Walgreens Boots Alliance
Walmart
Whirlpool Corporation
Wynn Resorts Limited
Yum! Brands