Board refreshment is a popular topic right now. There are many reasons for this, including:
- The rate of change in the global business environment is continually accelerating, due in large part to enormous developments in technology. Competition is continually bringing new surprises. Just witness the changing television and streaming landscape over the past couple of years. All this disruption means that expertise and skills necessary a short time ago become obsolete quite quickly. Board refreshment can help meet this challenge.
- Board diversity has also become a very hot topic. Study after study has confirmed that diverse boards make for a better-run company, and generate decisions that can capture a broader scope of a changing global business environment. To meet demands for diversity, boards must open board seats.
- It wasn’t that long ago that board appointments were treated as lifetime or tenured positions. This is no longer the case, as shareholders, state legislatures and regulators apply pressure for board refreshment and cutting-edge thinking. Board refreshment is on the minds of shareholders and regulators. Today, board refreshment is increasingly viewed as a best practice in company management.