Ideal Board Talent Composition
Is it time for board refreshment and wise succession plans?
Dr. Donna Hamlin, CEO
As organizations face growing demands and challenges, boards face a wider array of new topics and duties to support and oversee. The range of skills directors’ need is broadening, and most boards understand they need new talent with key skills and expertise to address emerging areas, such as AI, cyber-security and activism.
Boards now need to review the current composition and determine what board refreshment should be implemented, and succession plans should be in place to ensure their board competencies are fully present.
Nevertheless, a recent Conference Board* study reports that 70% of directors do not replace directors or prepare for succession well. They also do not replace directors who are not meeting their duties. In the study only 30% of directors say their board does not replace directors who are not contributing, accountable or at a level of skills needed. The study also notes that 93% of executives believe at least one director on their board should be replaced. That board stagnation can invite shareholder activists to take actions to make the change.
Refreshment is meant to handle the widening gap between traditional board skills and the expertise required to handle future challenges. Director qualifications show that boards aim to close this gap by prioritizing technology-related expertise. In 2025, 46% of new S&P 500 directors possessed technology experience (a 20% increase from 2021), 40% of new directors have human capital skills present in 2025, (up from 26.5% in 2021), cyber-security (22.7%,up from 18.8%), and environment/climate (10.5%, up from 3.6%). Focusing on forward-looking competencies shows a clear effort to have the board equipped with tools to oversee complex new challenges.
How To Reframe Your Refreshment
- Evaluating the mix of skills on your board is a key element. Additionally, it is wise to assess how your directors contribute, not simply what they know. As board agendas become denser and more complex, effectiveness increasingly depends on directors’ ability to engage constructively across issues, challenge management without defaulting to operational micromanagement, and collaborate under pressure.
- Assess the diversity of five problem-solving styles of directors to create cognitive diversity and strong solutions. We offer a VITALs® diagnostic tool to identify which style each director has and the value they bring.
- Address behavioral attributes—such as curiosity, adaptability, and sound judgment in ambiguous situations—when assessing both incumbent directors and new candidates to protect from weak dynamics.
- Make refreshment decisions and announce them. Conduct independent board evaluations to assess emerging gaps, anticipate upcoming retirements, and set expectations well in advance so the change is not disruptive. Align refreshment decisions with committee leadership succession to have continuity in oversight roles such as audit, compensation, and risk while still introducing new perspectives.
- Show that your board has a credible, ongoing refreshment process—anchored in strategy and document transparent disclosures and retain control of the narrative and timing of change. The refreshment strengthens oversight and reinforces board legitimacy by signaling accountability, futuristic thinking and a willingness to evolve alongside the business. Strategic board refreshment is seen as a preventive governance practice. Activist investors and proxy advisors approve it, as it closely scrutinizes board tenure, skills alignment, and refreshment cadence as indicators of governance quality.
For assistance to bring your board composition and talent selections to top levels, we are here to assist. Contact us at boardwise.biz or direct to dhamlin@hhboardwise.com or 510-517-7791
Study resource*https://www.conference-board.org/publications/board-practices-and-composition-2025-edition.
VITALS
To help, we offer a diagnostic tool - Vitals -- to assist boards directors and candidate to match ideal people for roles.
We encourage boards to identify personality styles, recognizing that different roles demand different ways of thinking, interacting, and solving problems.
To support this, we created a model based on four core personality styles: Accomplishing, Regulating, Creating, and Uniting.
We apply this profiler with boards and see improvements.
If you need support or board guidance, we are here to help.Contact us at dhamlin@hhboardwise.com
Resource to explore:
https://go.mcleanco.com/HR-Trends-Report-for-2026
