Top execs are either resigning from boards or, if they continue serving, devoting less time.
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Bored With Boards: At a time when the need for board oversight has never been
greater in the U.S., CEOs of Fortune 500 companies are “abandoning board service
at an alarming rate.” That’s according to a study conducted by James Drury
Partners, a recruiting and executive search firm based in Chicago. The firm
examined securities filings and annual reports of Fortune 500 companies filed
between 1990 and 2006. Whereas service on outside boards was common for CEOs in
previous decades, the practice apparently is falling out of favor, with “only
slightly more than half” of Fortune 500 top bosses acting as advisors to other
firms. Moreover, those who do serve are devoting less time, with their outside
commitments dropping from an average of 2.2 boards in 1990 to 1.4 boards today,
a decline of 36 percent.
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