EGC Corporate Governance Practices (May 2018)

EGC Corporate Governance Practices: A Survey and Related Resources PAGE 42 Board Composition Independent Directors At or immediately following the pricing of the IPO, approximately 81.5% of the non-controlled company issuers (110 of the 135 non-controlled companies) had a majority of independent directors. The average number of non-independent directors was approximately 2.2, and only approximately 10.1% of the 168 EGCs had its chief financial officer as a member of the board of directors. Gender Diversity Women made up on average approximately 11.0% of the board membership of EGCs that went public in 2017. Of the 90 companies that had female board representation, 63 companies (approximately 70.0%) had one female board member, 20 companies (approximately 22.2%) had two female board members, five companies (approximately 5.6%) had three female board members, and two companies (approximately 2.2%) had five female board members. Limitations on Board Tenure Of the 168 EGCs, approximately 2.4% had limitations on board tenure, and approximately 97.6% did not. Figure 65 : N=168. Limitations on Board Memberships Of the 168 EGCs, none imposed limits on the number of boards on which directors can serve. Yes; 4 No; 164 Board Tenure Limitations (By Frequency) Yes No