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New BoardEx Report Reveals the Impact of Age and Gender on Board Appointments

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News provided by

BoardEx

28 Apr, 2021, 08:38 GMT

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High qualifications and skill are no guarantee of a board seat, age and gender also impact the likelihood of securing these positions.

LONDON, April 28, 2021 /PRNewswire/ -- Today BoardEx, the leading provider of leadership intelligence released a new study: The Right Age to be a Director – which looks at the impact of age on the likelihood of being appointed to a board-level position.

Key among the report's findings is that high qualification and skill are no guarantee of a board seat. 

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How does age impact the likelihood of securing a board-level role?

For even the most talented people who have the right mix of experience, career options will narrow as an individual's age advances. There is a critical time in an executive's life when their likelihood for being appointed to a board sharply declines.

The study includes data on 42,608 individuals leading 5,944 public companies in the US and UK.  The analysis focused on the age of appointment for all director roles including executive director, CEO, Non-executive director, and Chair.  It also uses a model to estimate the remaining likelihood of a suitably qualified individual gaining one of these directorships as they age.

Board-Level Roles in the UK

  • In UK public companies, the age ranges are younger than in the US.  The average age of appointment for the role of CEO is 49, 56 for Non-executive directors and 59 for Chair. 
  • The odds of appointment decrease as suitably qualified leaders age.  An individual that is 49 years old has a 50:50 chance at being appointed to CEO, less than 10 years later, at the age of 58 there is a 1 in 10 chance at being appointed. 

Board-Levels Roles in the US

  • For CEO-hopefuls in the US, the odds of being appointed to the top spot are 1 in 3 when they hit the age of 55.  In just 6 years, those odds decrease by 70%.
  • The study shows that the average age of appointment to Chair is 59 while the oldest was appointed at 90.  It also finds that at any age, very few women are appointed to the position. 

The Majority of Board Roles Held by Women are as Non-Executive Directors

  • The window of opportunity for board appointments is longer for qualified men than it is for qualified women in both the US and the UK. Women tend to be appointed to board seats at younger ages than men, but within tighter time frame.
  • The age range for UK CEO appointments span 50 years for men and 33 years for women while most women secure CEO appointments between the ages of 46 and 63. 
  • In the US and UK, Non-executive director roles deliver the most gender balance of all board roles.  93% of US and 82% of UK board positions held by women are as Non-executive directors. 

A free download of the full report is available here. 

About BoardEx

BoardEx is a leading provider of executive intelligence and relationship mapping solutions. Organizations trust BoardEx to identify, qualify and map connection paths to 2 million organizations and the 1.5 million people who lead them. BoardEx is a part of Euromoney People Intelligence, a division of Euromoney PLC which provides organizations with unique data intelligence that connects them with the individuals who will have the greatest impact on their goals.  Euromoney People Intelligence is comprised of three unique brands: BoardEx, WealthEngine, and Wealth-X.  We empower our clients to build greater relationships, obtain and manage their best talent and reduce commercial risk. 

Learn more at boardex.com

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