Corporate Governance

Corporate Governance and Exec Compensation 2021

Issue link: https://digital.shearman.com/i/1425392

Contents of this Issue

Navigation

Page 39 of 71

Shearman & Sterling LLP 37 | Board Refreshment Term Limits Six of the Top 100 Companies have adopted mandatory term limits for their directors, a slight decrease from eight in 2020. The mandatory term limits apply only to non-management directors at four of these companies. 66 of the Top 100 Companies specifically state that term limits have not been adopted, most citing the value of the insight and knowledge that directors who have served for an extended period of time can provide about the company's business. Many of these companies also state that periodic reviews by the board or a board committee of each director's performance serve as an appropriate alternative to mandatory term limits. Of the sixty-six Top 100 Companies that specifically state that term limits have not been adopted, two adopted average tenure limits of 10 years and one adopted an average tenure limit of nine years. State that term limits should not be adopted Do not address the topic of term limits Have term limits ranging from 15 to 20 years Have adopted average tenure limits instead 66 25 6 3

Articles in this issue

view archives of Corporate Governance - Corporate Governance and Exec Compensation 2021