SPENCER STUART U.S. BOARD INDEX REVEALS A DECADE-LOW IN BOARD REFRESHMENT AS DIRECTOR DEMANDS INTENSIFY

2026 report finds boards are doubling down on seasoned experience over new director recruitment. Spencer Stuart urges an "always-on" approach to strategy, succession and board effectiveness

NEW YORK, Sept. 22, 2026 /PRNewswire/ -- As boards confront a faster-moving mix of business transformation, AI, and geopolitical uncertainty, Spencer Stuart today released its 41st annual U.S. Spencer Stuart Board Index, finding that S&P 500 board refreshment has fallen to its lowest level in a decade as companies lean harder on experienced directors.

The 2026 U.S. Spencer Stuart Board Index analyzes the composition and governance practices of S&P 500 boards. This year, boards appointed just 364 new independent directors – the lowest number since 2016 – and turnover declined to 0.7 new directors per board. The incoming class also skews toward seasoned leadership: 64% bring CEO or financial experience, while only 24% are first-time public company directors and just 10% are age 50 or younger. The average age of incoming directors rose to 60.1.

The findings underscore a central challenge for boards: how to preserve valuable experience and continuity while ensuring they have the people, processes and leadership needed to keep pace with what comes next.

"With boardroom turnover at a decade low, boards need to look beyond continuity and ask whether they have the capabilities, perspectives and expertise required for where the business is headed," said Rebecca Thornton, co-leader of Spencer Stuart's North American Board Advisory Practice. "The most effective boards treat refreshment as an ongoing strategic discipline, balancing the value of experience and continuity with the need for new expertise as business priorities evolve."

Against this backdrop, Spencer Stuart identifies four best practices that distinguish high-performing boards:

• Adopt "always-on" strategy and risk oversight: AI, cybersecurity, geopolitics and business transformation are moving too quickly for strategy and risk to be confined to annual planning sessions or periodic agenda items. Boards already meet 7.5 times a year on average, suggesting that effectiveness is less about adding meetings and more about using existing time differently. This includes creating more room for forward-looking discussion, seeking external perspectives and shifting appropriate oversight work to committees or technology-enabled information sharing.
• Make board refreshment a strategic discipline: The average rate of board renewal was 0.7, or less than one new director per board. Only 24% of incoming directors are first-time directors, down from 31% in 2025, while 10% are age 50 or younger, down from 11%. Boards are instead leaning toward established leadership credentials, with CEOs accounting for 37% of new directors, up from 30% last year. The data raise a critical question: whether the pace of board renewal is keeping up with changing business needs.
• Use board evaluations to drive continuous improvement: Evaluations are now nearly universal, with 99% of S&P 500 boards reporting some form of annual performance evaluation. Individual director evaluation is increasingly common, with roughly half (49%) of all boards disclosing some form of individual director review. Meanwhile, the share using an independent third party has climbed to 33%, from just 3% a decade ago. The most important step is turning findings into action on director performance, board composition, renewal and strategy oversight, and tracking progress throughout the year.
• Build CEO succession into the board agenda: Nearly one-quarter (24%) of departing S&P 500 CEOs served for less than five years, highlighting the need for boards to be prepared before a transition becomes urgent. Among new CEOs appointed in 2026, 69% were promoted internally. High-performing boards continually assess CEO performance, understand the external talent market and work with the CEO to develop internal leaders against the capabilities the company will need next.

"The pace and complexity of change are challenging traditional approaches to governance," said George Anderson, co-leader of Spencer Stuart's North American Board Advisory Practice. "Boards can't afford to treat strategy, risk, succession or their own effectiveness as periodic exercises. An always-on approach helps boards anticipate what is coming, challenge assumptions and support management through increasingly rapid change."

The U.S. Spencer Stuart Board Index is based on Spencer Stuart's analysis of the latest S&P 500 proxy statements filed between May 1, 2025, and April 30, 2026.

About Spencer Stuart
Privately held since 1956, Spencer Stuart is a leading global advisory firm specializing in people, team and organizational performance – spanning more than 60 offices, over 30 countries and more than 50 practice specialties. Boards and executive leaders consistently turn to Spencer Stuart for senior-level executive search, board recruitment, board effectiveness, succession planning, executive assessment and development, culture change and performance acceleration for senior leadership teams. For more information on Spencer Stuart, please visit www.spencerstuart.com.

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SOURCE Spencer Stuart