AEX companies are increasingly appointing oversight directors with demonstrable sustainability experience

The average age of all newly appointed supervisory board members by AEX companies in 2022 decreased by 1.5 years: from 59.3 in 2021 to 57.5 in 2022. In 52% of new appointments to the over the past year, AEX companies have opted for a female (was 55 years old). % in 2021). This brings the share of women on Dutch supervisory boards to 36%. Nearly a quarter of all supervisory directors appointed by AEX companies in 2022 have demonstrable sustainability experience. This is shown by Board Monitor Europe, an analysis of a total of 853 new appointments of supervisory directors in fifteen European countries, carried out by the executive search and leadership consultancy Heidrick & Struggles.

Despite the fact that more young supervisory directors were appointed in the Netherlands last year, their average age is still significantly higher than the European average (56.2 years). The share of female appointments in AEX companies has decreased slightly compared to 2021. Elsewhere in Europe, this percentage has even increased; from 44% in 2021 to 49% in 2022. The Netherlands has been a leader in diversity and inclusion for many years,” says Imke Lampe, Managing Partner of Heidrick & Struggles Netherlands. “It looks like we are slowly losing that status. In fact, we have already been overtaken by a number of other European countries. In France and Italy, for example, the board of directors already has more than forty percent women. Here it is only 36 percent.

Beginners

As AEX companies opted for younger supervising directors more often in 2022, the number of newly appointed directors with no board experience has also increased. While in 2021, only 10% of all new appointments were said to be “rookies”, in 2022, the choice fell in almost a quarter of cases on a candidate with no experience on a board of directors. administration of a listed company. Taken in all European countries, the share of first-time buyers is 39%. As a direct result, AEX companies more often nominated a candidate who combines the position of supervisory director with an active career: from 39% in 2020 to 74% in 2022. Imke Lampe: “Despite the fact that last year, more candidates have been appointed without experience in the boardroom, AEX companies still prefer an experienced ex-CEO.At the same time, supervisory board members with active careers are daily confronted with the big issues of our times, such as cybersecurity, digitalization, diversity and sustainability, so it is easier for them to discuss these with board members and provide valuable advice than, for example, their fellow supervisory directors at the retirement.

Sustainability

According to a recent survey by Heidrick & Struggles, BCG and INSEAD, only 29% of all directors globally believe their supervisory boards have enough knowledge to challenge and control management on sustainability issues. Nearly a quarter of all supervisory directors appointed by AEX companies in 2022 have demonstrable sustainability experience. A significant increase from 2021, when this knowledge was present in only ten percent of all new appointments. Lampe: “From 2024, listed companies must report on sustainability. This means that organizations need to clarify their sustainability goals and how to achieve them. In addition to attracting directors with experience in sustainable development, it is important that current supervisory directors of listed companies continue to develop in the field of sustainable development.

About the report

Board Monitor 2023 is based on an analysis of the profiles of 1,337 newly appointed chief supervisory officers of the largest listed companies in 2022 across 30 markets. Australia, Belgium, Brazil, Canada, Colombia, Denmark, Germany, Finland, France, Hong Kong, Ireland, Italy, Japan, Kenya, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Saudi Arabia, Singapore, Spain, UK Arab Emirates, UK, USA, South Africa, South Korea, Sweden and Switzerland are included in this report.