Boards favour new faces over structural reform in diversity push

Report finds 61% of boards focus on recruitment whilst term limits and seat expansions remain stagnant at 15%.

Singapore boards have prioritised recruitment of directors with different identities or expertise as the main driver of diversity reform over the past five years, whilst structural governance changes remain limited.

A joint report from the Council for Board Diversity and Egon Zehnder found that 61% of Singapore board members focused on recruiting directors with different identities or expertise to meet diversification needs.

Board effectiveness reviews ranked second at 42%, followed by setting board diversity policies with measurable targets at 41%.

Expansion of search and nomination channels stood at 29%, whilst 23% implemented longer-term board succession planning.

Other governance changes were less common, as increasing the number of board seats and changing term limits both stood at 15%.

Some 14% of respondents reported no changes in governance practices.

Changes to onboarding and training practices stood at 12%, whilst 8% altered processes for taking up board leadership roles.

Appointment of diversity committees stood at 3%, and changes to age limits at 2%.

The findings come as 92% of surveyed board members said they had taken deliberate steps to bring more diverse talent onto boards.

Respondents identified business strategy as the main driver of diversity efforts, followed by alignment with company values and culture, and compliance with regulatory requirements.

Boards reported using structured approaches to diversification, including skills matrices to identify gaps in expertise and recruitment needs.

Respondents said boards were seeking directors with industry experience, subject-matter expertise in areas such as artificial intelligence and sustainability, and functional specialisations, including technology and legal leadership roles.

The survey also found boards were appointing first-time directors to broaden perspectives and strengthen board capability.

Singapore respondents reported greater use of measurable diversity policies and expanded nomination processes than other regions, reflecting listing rules requiring companies to maintain and disclose board diversity policies covering gender, skills, experience, and related areas.