How much time are directors spending on board obligations? Spencer Stuart’s director pulse survey found significant differences between public and private company directors in the time they spend on board activities.
Directors logged an average of 278 hours annually on their most complex board, including attending, preparing for, and traveling to/from board and committee meetings. Public company directors spend more time on board obligations, averaging 321 hours a year, compared with an average of 150 hours for private company directors.*
Time spent on committee work varied by committee and type of board. Respondents reported the least amount of time on nominating/governance committee work and the most time on audit committee duties. Private company directors reported less time overall on committee duties, with more than half spending three or fewer hours per month on the three key committees. The widest differential was with audit committee work, with 43 percent of public company directors spending six or more hours a month on audit committee work compared with only 17 percent of private company directors.
Nearly 75 percent of the 743 private and public company director respondents reported that time on board obligations met their expectations. The lion’s share (again, nearly 75 percent) reported a slight or significant increase in time obligations over their board tenures.
Public and private company directors generally aligned on the issues warranting more time in the boardroom. Long-term company strategy/performance topped the list, noted by 69 percent of respondents, followed by talent/human capital and CEO succession, noted by around half the respondents.
No single issue emerged as a clear winner when it came to issues deserving less time in the boardroom. Activism came in first place, selected by about one-third of respondents, followed by a cluster of runners-up. ESG; short-term performance/strategy, DE&I and geopolitical issues each were selected by 20–25% of respondents.
In your opinion which topics need more discussion time?
Private company directors
In your opinion which topics need less discussion time?
For your most demanding board, how many hours a month do you average on committee work (including meetings and pre-work/pre-reads)?
Nom/Gov committee
|
% Public Co. |
% Private Co. |
% Combined(Pub+Pvt) |
| Answered (#) |
343 |
145 |
488 |
| 0–3 hours (%) |
48% |
53% |
49% |
| 3–6 hours (%) |
37% |
26% |
34% |
| 6–9 hours (%) |
9% |
10% |
9% |
| 10+ hours (%) |
6% |
11% |
7% |
| |
|
|
|
| 0–6 |
85% |
79% |
83% |
Compensation committee
|
% Public Co. |
% Private Co. |
% Combined(Pub+Pvt) |
| Answered (#) |
340 |
161 |
501 |
| 0–3 hours (%) |
38% |
55% |
44% |
| 3–6 hours (%) |
35% |
29% |
33% |
| 6–9 hours (%) |
17% |
11% |
15% |
| 10+ hours (%) |
10% |
4% |
8% |
| |
|
|
|
| 0–6 |
73% |
84% |
77% |
Audit committee
|
% Public Co. |
% Private Co. |
% Combined(Pub+Pvt) |
| Answered (#) |
370 |
147 |
517 |
| 0–3 hours (%) |
22% |
54% |
32% |
| 3–6 hours (%) |
35% |
29% |
33% |
| 6–9 hours (%) |
25% |
10% |
21% |
| 10+ hours (%) |
18% |
7% |
15% |
| |
|
|
|
| 0–6 |
58% |
83% |
65% |
* Data represent the responses of 95 directors to a follow-up survey.