Indian companies looking for younger independent directors
Recent trend in appointment of Independent Directors by both public and private sector is indicating the diversification in terms of age for board members. Companies are increasingly looking for younger independent directors in a bid to complement the experience of senior board members and to cater to demand for specific skills in technology, cybersecurity, material science and ESG (environmental, social and governance). The trend has gathered steam as many companies are looking to fill up vacant slots for directors after the maximum ten-year term for many Independent directors is coming to end.
Companies are also looking for directors who can relate to the employee base. A lot of the target consumers are younger folks and there is an increasing recognition among many progressive companies that the board cannot be disconnected with the market.
The average age of independent directors (IDs) on the board of directors of Maharatnas and Navratnas has fallen from 61 years in 2018-19 (FY19) to 55 years in FY22, as per an analyst report. Number of women directors and participation of Independent Directors in board meetings are looking improved.
