What is America’s strongest board?

The data is compiled by the Chicago-based JamesDruryPartners and is titled The Weight of America’s Boards. 

Some of the biggest companies are measured against each other based on how strong their directors are – dubbed “director weight” in this report. 

Other conclusions focus on how America’s boards continue to diversify but are having to deal with new challenges.

From a study of 674 boards and 6,525 board director seats, representing America’s 500 largest corporations by both revenue and market capitalisation, the results show that:

• Global paints and materials supplier PPG Industries has the highest average director weight in 2023, with a score of 8.58 out of a maximum score of 10. 
• Other key names on the top ten list (listed in full at the bottom of this article) include the Disney corporation and Uber technologies.

It’s the metric used by JamesDruryPartners, and it’s largely based on experience. Each director on a board is scored between 1 and 10 depending on their “level of business accomplished in their principal career field.”

Individuals with active CEO experience are awarded the maximum score of 10. Other scores reflect other peak positions in a person’s career, usually executive roles. For example, chief operating officer gains 8 points, chief financial officer 7 points, corporate secretary 5. 

The ADW is – as the name suggests – the average of all directors’ scores. CEOs are excluded even though they almost always sit on the board.

It means the company has the highest level of relevant business achievement among its board members – achievement which is expected to translate to success. 

JamesDruryPartners values experience this kind of experience beyond anything else. It maintains that directors with achievements behind them are far more likely to ask the right questions on critical issues when they arise, ensuring progress. 

Yes, here are two noteworthy ones:

• The report has hailed “significant progress” in director diversity. Since 2011, the proportion of female directors has gone from 19% to 33%, and male directors down to 67% from 81%. Also, the latest figures show that the percentage of women in the boardroom now exceeds the percentage of women in c-suite positions in the same companies – a major first in American governance.

• The report has also flagged concerns – chief among them being that far fewer accomplished business executives occupy board seats today, meaning that ADW numbers for many companies has suffered. 

The report has also raised the question of increased regulations and scrutiny on board directors and suggested would “weaken a board’s strategic focus and decision-making ability”.

You can read the full report here.