Experience or Independence? Director Tenure and Potential Tradeoffs: A Global Comparison

Director tenure has long been a subject of debate, with some fearing that a long tenure may compromise a director’s independence while others contending that with tenure comes experience and knowledge and alone should not be a measure of independence. Boards and investors also often view director tenure from a board refreshment perspective, where a preponderance of long-tenured directors may signal that the board is becoming too stale. ISS-Corporate analyzed global director tenure data and potential implications for corporate governance, highlighting the diverse approaches across different markets.