In the ever-evolving corporate landscape, board governance remains a critical pillar of business success. The 2025 edition of The Weight of America’s Boards, released by JamesDruryPartners, provides a comprehensive analysis of corporate board strength. The report identifies governance capacity according to JamesDruryPartners’ formula and ranks the top 10 public companies they have identified. Arrow Electronics, Parker Hannifin and Starbucks lead the list, showcasing a mix of experience and strategic oversight.
Trends in Corporate Governance
The report highlights an ongoing decline in Average Director Weight (ADW), a metric designed to measure board strength. Since 2022, ADW has decreased by 3%, signaling a shift in board composition that could impact corporate oversight. Notably, the presence of active CEOs on external boards continues to dwindle, while financial expertise—particularly the inclusion of CFOs—remains limited.
“In our opinion, the best predictor of a board’s governance strength, or ‘board weight,’ is the business acumen of the directors serving on the board. Greater business acumen equips directors to challenge conventional thinking, exercise leadership in a crisis, and engage the CEO, management team, and fellow directors in rigorous discussion regarding critical business issues,” said James Drury III, Chairman and CEO of JamesDruryPartners.
The report underscores the importance of directors with deep business acumen, particularly in an era where financial malfeasance has historically led to corporate failures.
Composition of Today’s Boards
There is no single “ideal” formula for board composition—each board is uniquely structured based on company needs. The 2025 study provides insights into the professional backgrounds of board members, categorizing them into 42 business acumen groups.
While declining in number, P&L Executives (CEOs and other leaders with profit-and-loss responsibilities) still hold the majority of board seats, making up 49.9% of all directors. Staff Executives—including CFOs, CAOs, CHROs and General Counsels—comprise 25.3%, while the smallest representation comes from Nonprofit Executives (1.5%) and professionals in media, advertising, publishing and sports (1.5%).
Board Diversity: Progress and Challenges
Diversity in corporate governance has advanced significantly, with women now holding 35.7% of board seats—an 89% increase since the study’s inception in 2011. However, the composition of female board members differs from their male counterparts. Women are more likely to come from staff executive roles (35.8% of female directors vs. 19.5% of male directors) and less likely to have a P&L background (36.5% of female directors vs. 57.4% of male directors).
Ethnic diversity is also evolving. Of the 6,323 board seats analyzed, 1,517 (24.0%) are held by ethnically diverse directors, with Black and Hispanic directors representing the largest share at 16.7%. The most significant growth has occurred among white female directors, whose board presence has increased by 2.2% since 2022.
10 Attributes of Effective Board Directors
A confidential survey of 30 of America’s experienced directors highlights dominant attributes for board effectiveness. The list includes the following:
- Communication Skills (73%) – Thoughtful, articulate and aware of the impact of their words. Listens actively and contributes meaningfully.
- Professional Collegiality (67%) – Team-oriented, diplomatic and respectful of diverse viewpoints.
- Relevant Experience and Knowledge (63%) – A track record of business success, with CEO experience being particularly valued.
- High Integrity and Honesty (57%) – Ethical, transparent and committed to boardroom confidentiality.
- Humility (57%) – Practical, down-to-earth and ego-free, with a focus on the greater good.
- Preparation and Supportive Engagement (50%) – Diligent in research, constructive in questioning and respectful of management roles.
- Courage and Confidence (50%) – Willing to ask tough questions and admit when they don’t know an answer.
- Understanding of Governance vs. Management (40%) – Knows the difference between board oversight and executive decision-making.
- Respectful of Peers (33%) – Open to differing opinions and capable of constructive disagreement.
- Inquisitiveness (30%) – Highly curious, eager to learn and continuously seeking insights.
The Future of Board Leadership
As corporate boards face increasing pressure to navigate economic uncertainty, technological advancements and heightened regulatory scrutiny, their ability to adapt may be an important consideration in 2025. The Weight of America’s Boards report serves as a helpful source of information for companies striving to strengthen their governance structures.
“In good times and bad, boards should strive to ensure they are composed of the most insightful, accomplished, and seasoned business leaders,” Drury notes.
For more details on The Weight of America’s Boards, visit JamesDruryPartners.
