Reuters Sustainable Finance Newsletter - US boards seek experience to cope with AI, Tariffs

By Ross Kerber

Oct 8 (Reuters) - This is the weekly Reuters Sustainable Finance Newsletter, which you can sign up for here .

Everybody is getting older on U.S. corporate boards, is a big takeaway I drew from looking at an annual review of S&P 500 corporate directors.

You can see the results of the review in my main story linked in the newsletter below this week. You'll also find links to our coverage of Tesla's cheaper vehicles and a tale of how state regulators showed BlackRock some Minnesota Nice.

Please follow me on LinkedIn and/or Bluesky. You can reach me via ross.kerber@thomsonreuters.com

US boards look for experience to deal with AI and tariffs

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.

You can read my column this week by clicking here.

Company news

With a U.S. tax credit ended, Tesla TSLA.O unveiled lower-cost versions of its SUV and a sedan model. The new offers could help the electric carmaker overcome mounting competition from Chinese manufacturers and backlash in Europe over CEO Elon Musk's support for right-wing politicians.

Billionaire-connected entrepreneur Bari Weiss was named editor in chief of CBS News by Paramount Skydance PSKY.O CEO David Ellison.

Oil majors like Exxon XOM.N and Chevron CVX.N must choose between operations cuts, debt trims or weaning shareholders off dividends and buybacks as energy prices fall.

On my radar

"Donald Trump has become the most serious threat to corporate brands," according to the latest Reputation Risk Index from public-relations firm Global Situation Room. The group cited Trump's tendency to single out companies, which has "turned traditionally heated political rhetoric into both a scolding reputational and revenue threat.”

Activist investor Accountability Board said it filed a shareholder proposal asking Wells Fargo WFC.N to reinstate its policy of having an independent chair. The bank said in July it would give CEO Charlie Scharf an additional role as chairman, recombining roles separated after a 2016 fake-accounts scandal.

BlackRock BLK.N won a round in Minnesota last week when the state's public utilities commission green-lit a plan for the New York fund giant and the Canada Pension Plan to buy utility owner Allete, ALE.N based on revisions meant to address the concerns of environmental groups and rate payers such as whether the new owners would provide capital for cleaner energy.