Board Monitor 2025 – The Quiet Power of Continuous Board Refreshment: Why High-Performing Companies Treat it as a Strategic Discipline
- Impact Boards EM
- 5 days ago
- 1 min read
Heidrick & Struggle's latest Board Monitor series examines how and why high-performing companies treat board refreshment as a strategic discipline.
For decades, board refreshment has been treated as a behind-the-scenes process typically managed by a small circle of insiders, rarely scrutinised even by shareholders, and often overlooked by everyone else. Directors at public companies were usually elected as part of uncontested slates, often with 95% or greater shareholder approval. At privately held companies, processes were typically informal. Individual contributions were rarely examined. Refreshment was more ritual than strategy.
But in today’s environment, that approach is no longer sufficient. Only 47% of CEOs and directors Heidrick & Struggles surveyed recently are confident their board refreshment practices are positioning them well for the future.
Boards are under pressure – not just to oversee the business of today, but to help shape the future of the enterprise, and all in a context of ongoing uncertainty and volatility. A majority of leaders noted in another recent survey that they expect their CEO succession practices to have increasing influence on valuation.
Stakeholders of all kinds are seeking assurance that companies’ governance condition is strong, and yet, when asked what their company does in relation to corporate risk and operations, only 26% of respondents report doing six or more assurance activities related to leadership below the CEO and board level.
In this context, adopting and disclosing effective leadership attraction, assessment and succession practices is not simply a governance best practice – it’s a performance imperative, and it starts with the board itself.
Read the full pdf article below.
