Experience versus independence: How long should non-executive directors’ tenure be in the US?
Over the last proxy season, we spent time thinking about how to approach different governance standards in different geographies. As an example, in the US, it is common for the chair and chief executive to be the same person, whilst in the UK this is frowned upon. Furthermore, the definition of an independent director is quite different: in the UK, a tenure exceeding nine years for a non-executive director (NED), calls into question their independence. However, in the US a NED with a tenure of over 20 years might still be regarded as independent.
