New Study on Corporate Governance: America's Largest Public Companies Ranked by Board Strength - Fewer Active CEOs Serving on Boards, Share of Board Seats Held by Women and Minorities Increases
- PPG Industries, Teradyne, and International Paper have the strongest boards in the U.S., according to a study. ADW declined by 3.5% since the last report, indicating a decrease in business acumen.
- Some boards lack the financial and business leadership expertise needed to deal with the challenges they face.
Top-10 Strongest Corporate Boards Revealed; Pressure Mounts as Boards Face New Challenges, Shifting Priorities, and a Marked Decline in Business Acumen
This year, the study carefully evaluated the business acumen of every director serving on more than 600 public boards. A complete ranking of the corporations can be found in the full report: The Weight of America's Boards (2023)
Top-10 Corporations with the Highest Average Director Weight:
- PPG Industries
- Teradyne
- International Paper
- Waste Management
- Elevance Health (Formerly Anthem)
- Baker Hughes
- Regions Financial
- Walt Disney
- Uber Technologies
- Yum! Brands
"The Weight of America's Boards provides a thoughtful benchmark by which the integrity of a board's governance system can be measured," said the report's lead author, Jim Drury (CEO of JamesDruryPartners). "It is an honor to provide the unique insights contained in the study. For more than a decade, boards have used its findings to facilitate boardroom discussion, and we anticipate that the actionable insights in this edition will help them to further strengthen their governance capacity."
Other Key Findings:
Current Challenges: Geopolitical and macroeconomic instability, increased regulatory oversight, ESG compliance, rapid technological advancement, cyber risk, and a complex global business environment are among the leading issues corporate boards are facing today. In addition, public skepticism towards corporate boards and unfounded criticism from shareholder activists continues to grow.
Concerning Trends: For the first time in the history of the study, Average Director Weight declined among the boards examined. ADW fell
CEO Drury attests, "We are more convinced than ever that strong governance capacity is the high-octane fuel in a corporation's engine. It is the able leadership of the board Chairperson and committee heads that catalyzes this precious fuel in a manner that fosters governance strength, quality, and effectiveness."
About JamesDruryPartners (www.jdrurypartners.com) – Following an earlier career in management consulting and executive search, Jim Drury founded JamesDruryPartners to advise boards in the selection of new CEOs and board directors. While advising some of the highest profile companies in the
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SOURCE James Drury Partners
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