Issue link: https://digital.shearman.com/i/1512772
Shearman & Sterling LLP 75 | Board Refreshment Term and Tenure Limits Nine of the Top 100 Companies have adopted mandatory term limits for their directors, a slight increase from eight in 2022. The mandatory term limits apply only to non-management directors at six of these companies. 58 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. 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. State that term limits have not been adopted Do not address the topic of term limits Have term limits ranging from 15 to 20 years Have adopted average tenure limits instead 58 33 7 2 Of the 58 Top 100 Companies that specifically state that term limits have not been adopted, one adopted an average tenure limit of 12 years, and one adopted an average tenure limit of nine years.