COLUMN-US boards look for experience to deal with AI and tariffs: Ross Kerber

By Ross Kerber

Oct 8 (Reuters) - Recruiters for directors at top U.S. companies are going back to basics, new data shows, as boards seek experienced hands to tackle challenges like artificial intelligence and President Donald Trump's tariffs.

The trends also diminish boards' one-time focus on bringing in younger directors and those from more diverse backgrounds. This year, incoming directors at S&P 500 companies averaged 59.1 years old, continuing years of increasing ages, according to an annual review set for release on Tuesday by executive search and leadership advisory firm Spencer Stuart.

Moreover, 30% of new directors are active or retired CEOs, and 29% have a financial background - both figures unchanged from 2024.

"We're going back to people saying they would really like CEO experience in the room," said Julie Hembrock Daum, chair of Spencer Stuart's North American Board Advisory Practice. "Most companies would like an active CEO on the board if they could, but that's harder and harder to come by," because of policies by big investors barring public company CEOs from having too many outside commitments.

Issues that put a premium on experience include how companies will respond to AI and Trump's tariffs.

Boards of companies in industries like hospitality or construction are also dealing with pressure on their employees such as the rising cost of living, especially housing costs, and more aggressive immigration enforcement, Daum said.

One company that added an outside CEO as an independent director this year is 3M, MMM.N which appointed to its board David Bozeman, CEO of C.H. Robinson Worldwide.CHRW.O Another, Meta Platforms,META.O added as directors Exor EXOR.AS CEO John Elkann and Patrick Collison, CEO of privately held Stripe.

Representatives for 3M and for Meta did not immediately comment for this article.

NEW LOOK AT DEMOGRAPHICS

Once seen as ceremonial bodies, corporate boards have drawn increased attention since the financial crisis. Board committees are now pressed to take on stronger oversight of matters like executive pay and information security.

Boardroom demographics also got a fresh look after the #MeToo and Black Lives Matter movements. Many companies added disclosures about directors' self-identified race, gender and sexual orientation.

Advocates used the data to press companies to add more women and minorities to their boards earlier this decade.

That effort resulted in more diverse boards, but momentum has slowed during the recent backlash against diversity. Among 374 new independent directors added by S&P 500 companies this year, 38% were women, down from 42% in 2024 and 47% in 2020, Spencer Stuart found. Minority directors made up 17% of this year's class, down from 26% in 2024 and 22% in 2020.

Overall representation on corporate boards has largely stayed the same as in 2024, with women now making up 35% of all S&P 500 directors and minorities 24%.

Barry Lawson Williams, a boardroom veteran long concerned about corporate diversity, said he has noticed a similar cooling of demand for candidates from under-represented groups. Some boards are not replacing minority candidates who leave, he noted.

"To me the issue is board refreshment or board rotation, that will allow for more diversity and recognize the fact that the skill sets that are needed change over time," Williams told me in an interview.

Daum agreed some boards are not replacing directors. That was partly why the number of new independent directors fell to 374 in 2025 from 406 in 2024 and 413 in 2020.

"Boards tended to get slightly larger, like when they were adding diverse candidates. Then, when they had turnover, they didn't replace people," she said.

Total average compensation for non-employee directors was $336,352 this year, up from $327,096 last year and $272,497 in 2015.