Susan Schultz- When is Time for a Director to Step Down

Introduction – Too often boards of directors are overloaded with directors who are disruptive, passive, no longer current, or just taking up seats that could be used by more qualified individuals.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.


The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

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