Introduction – Too often boards of directors are overloaded with directors who are disruptive, passive, no longer current, or just taking up seats that could be used by more qualified individuals. Unfortunately, a top boardroom challenge is to devise ways to have more frequent director rotations.
On average, a board brings on a new director once every other year, according to Equilar. In 2012, S&P 500 boards elected only 291 directors, the smallest number of new appointees since 2001, Spencer Stuart data shows. Unfortunately, boardroom culture can too often be like that of a club, in which members consider it disgraceful not to be asked to stand for reelection. Board members must recognize that director seats are not an entitlement in perpetuity.