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Benchmarking: R3000 & S&P 500 Board & Governance Practices

By Randi Morrison posted 20 hours ago

  

A new data-rich report: “Board Practices and Composition in the Russell 3000 and S&P 500: 2025 Edition” from The Conference Board and Esgauge, in collaboration with KPMG, Russell Reynolds Associates, and the Weinberg Center for Corporate Governance, benchmarks board size; director independence; board committee structure; board leadership structure; director expertise, skills, and qualifications; board diversity; and director term, tenure, and overboarding policies. The report notes these takeaways:

·    Most boards now operate with eight to 12 directors and three to four committees, balancing effective oversight with agility amid growing regulatory and technological demands.

·    Average director age continues to climb as boards favor experience and continuity; this trend strengthens institutional knowledge but may heighten long-term challenges around succession, refreshment, and leadership pipeline development.

·    Women now hold about one-third of US board seats—a record high—although momentum has slowed as turnover declines and some boards downplay demographic characteristics.

·    Board director demographic diversity reporting has contracted sharply, with racial and ethnic disclosure falling from 2024 peaks and complicating year-over-year benchmarking.

·    Boards are diversifying beyond traditional CEO backgrounds and adding expertise in technology, cybersecurity, human capital, and sustainability as oversight broadens from financial stewardship to further encompass strategic and risk governance.

·    Board turnover and election of new directors slowed in 2025, reflecting both a natural cyclical pause and companies’ tendency to favor stability in uncertain external conditions

·    Board governance is evolving from rigid rules to flexible oversight: term limits remain rare, mandatory retirement ages are relaxing, and overboarding policies are standard but increasingly calibrated to balance capacity, experience, and accountability.

See this Fortune article and additional benchmarking resources on our Board Practices / Governance Practices page.

                    This post first appeared in the weekly Society Alert!

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