A lack of young talent in the boardroom is becoming a major issue that must be tackled if Scottish companies are to be successful long-term.
The average age of a director of a listed company based in Scotland is 59 - and 56 for privately owned companies.
This is according to a new report from law firm Burness Paull in partnership with board consultants Savendie, compiled following a series of debates and interviews with chairs, executive and non-executive directors and company secretaries in listed and private companies in Scotland.
While many participants cited positive progress in boardroom diversity in terms of gender and ethnicity in recent years, a lack of young talent coming through the pipeline emerged as a key concern.
Only a handful of the participants had experience of directors under the age of 30 on their boards - but all spoke highly of the contribution and benefit that was brought to the table by the younger members.
Contributors said that much of what younger individuals lacked in business and governance experience could be enhanced by training - and that the fresh insight they provided was extremely beneficial.
Other challenges raised by directors included the increasing burden of reporting to meet regulations, skills shortages at boardroom level, the role of non-executive directors and meeting environmental, social and governance commitments.
Walter Clark, partner at Burness Paull, said: “All the challenges discussed with experienced directors and company secretaries have certainly been amplified in recent months - for many it is hard to know right now what resuming ‘normal’ business practice will mean.
“Future boardroom conversations about climate change; flexible working; health, wellbeing and safety of employees; culture and remuneration will certainly be happening against a different backdrop.
“But equally, the case for creating effective boards for the future has been strengthened by what they have been through in recent months.”
