For those boards seeking to add a director with cyber or tech expertise, “Cybersecurity and the Board” from Spencer Stuart identifies critical qualifications to seek in prospective directors and the potential or likely upsides/downsides associated with different candidate backgrounds commonly explored for this role.
Importantly, a director does not exist or perform in a vacuum, but rather as part of a full board and in concert with management (in an oversight role). As such, determining the most suitable candidate background will (or should) in all cases depend on the company’s unique facts and circumstances.
The report notes that less than 4% of new S&P 500 directors in 2021 had experience leading a cybersecurity, IT, software engineering, data and analytics or similar function. As previously reported, according to Heidrick & Struggles' annual "Board Monitor," among the 449 newly appointed Fortune 500 independent directors in 2021, the percentage with cyber experience increased 17% year-over-year.
Access additional resources on our Board Composition and Cybersecurity/Data Privacy and Board Practices/Governance Practices pages.