Friday, September 01, 2006
In Australia You Have to Be a Director to Become One
ISS has a blog posting today about the use of professional directors in Australia. The post discusses a fairly recent study by the Australian Council of Super Investors. The results of the study, which ISS performed for the ACSI, are available here.
What the study found is that:
1. Of the 173 individuals appointed to non-executive director (NED) positions in S&P/ASX 100 companies in 2005, 105 of these individuals already held NED posts with S&P/ASX 100 companies. As the summary states, "It appears that in 2005 a major qualification for gaining entry to an S&P/ASX 100 company board was to already be or have been a company director."
2. The study also found that 2005 was not an aberration. There has been steady growth in Australia in the use of NEDs.
3. On average, 61.7% of female directors of ASX listed companies held more than one board seat, compared to an average of 40.9% for males.
4. Board pay has continued to increase. In 2005, the average NED (excluding chairpersons) in Australia received $154,165 in remuneration for director services.