Fortune reported on the rise in mandatory retirement age policies for directors among S&P 500 companies. Citing data from Freshfields (sourced from the 2021 Spencer Stuart Board Index, shown below), the article notes an increase from about 50% of companies in 2015 to 70% in 2021 that have mandatory retirement age policies, with just over half of those establishing a limit of 75 and older. The prevalence of policies with a 75 and older age limit reflect a trend toward proportionally toward higher retirement ages over time.
Term limits for directors remain relatively uncommon, with just 6% of S&P 500 boards disclosing established limits. Of those, nearly three-quarters have term limits ranging from 15 – 20 years.
We reported on Freshfields’ data-rich “Trends and Updates from the 2022 Proxy Season” previously here.
See our recent report: “Reconsider Board Age Restrictions” and additional resources on our Board Composition and Board Diversity pages.
This post first appeared in the weekly Society Alert!