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U.S. Boards Turn to Experience Amid AI and Tariff Challenges: Ross Kerber
New data suggests that top U.S. companies are returning to traditional principles when appointing directors, seeking seasoned leaders to help navigate challenges such as artificial intelligence and President Donald Trump’s tariffs.
The shift marks a move away from the earlier focus on appointing younger and more diverse board members. According to an annual review by executive search and leadership consulting firm Spencer Stuart, to be released Tuesday, the average age of new directors joining S&P 500 boards this year rose to 59.1 years, continuing an upward trend.
Moreover, 30% of new directors are active or retired CEOs, while 29% have financial backgrounds—both figures unchanged from 2024.
“We’re seeing boards go back to saying they really want that CEO experience in the room,” said Julie Hembrock Daum, who heads Spencer Stuart’s North American Board Advisory Practice. “Most companies would love to have an active CEO on their board, but it’s increasingly difficult,” she added, noting that many large investors discourage sitting CEOs from taking on too many outside commitments.
The areas where experience is proving most valuable include guiding companies’ responses to AI adoption and Trump’s renewed tariffs.
Daum added that boards in industries like hospitality and construction are also grappling with pressures from rising living costs—particularly housing—and stricter immigration enforcement affecting their workforce.
Among the companies adding external CEOs as independent directors this year are 3M (MMM.N), which appointed David Bozeman, CEO of C.H. Robinson Worldwide (CHRW.O), and Meta Platforms (META.O), which brought in John Elkann, CEO of Exor (EXOR.AS), and Patrick Collison, CEO of privately held Stripe.
Representatives for 3M and Meta did not immediately comment on the report.
Rethinking Boardroom Demographics
Once seen as ceremonial bodies, corporate boards have drawn greater scrutiny since the financial crisis. Committees now face pressure to exercise tighter oversight on issues such as executive pay and cybersecurity.
Following the #MeToo and Black Lives Matter movements, boardroom diversity also came under fresh focus, with many companies disclosing the self-identified race, gender, and sexual orientation of their directors.
Earlier this decade, activists used this data to push for more women and minorities in boardrooms. That drive initially produced more diverse boards, but momentum has slowed amid recent backlash against diversity efforts.
Spencer Stuart found that 38% of the 374 new independent directors added to S&P 500 boards this year were women—down from 42% in 2024 and 47% in 2020. Minority representation among new directors also dropped to 17%, from 26% in 2024 and 22% in 2020.
Overall representation remains steady from last year, with women now comprising 35% and minorities 24% of all S&P 500 directors.
Barry Lawson Williams, a longtime board veteran and advocate for corporate diversity, said he has observed a decline in demand for candidates from underrepresented groups. “The issue for me is turnover and board refreshment—ensuring that as needs evolve, new skills and perspectives are brought in,” Williams said in an interview.
Daum agreed, noting that fewer boards are replacing outgoing directors. Consequently, the number of new independent directors fell to 374 in 2025, compared with 406 in 2024 and 413 in 2020.
“Boards expanded somewhat when adding diverse candidates,” Daum explained. “But as turnover occurred, they often didn’t replace those seats.”
The average total compensation for non-employee directors rose to $336,352 this year, up from $327,096 in 2024 and $272,497 in 2015.
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