Tracking CHROs on Corporate Boards

In today’s evolving corporate landscape, the presence of chief human resources officers (CHROs) on corporate boards has become a focal point for organizations seeking to enhance their governance and strategic decision-making. As companies have increasingly recognized the critical role of talent management, culture and leadership in driving long-term success—particularly following the COVID-19 pandemic and the Great Resignation—the inclusion of CHROs on boards reflects a growing appreciation for the human capital dimension.

In this study, Equilar examines the prevalence of CHROs serving on Russell 3000 boards, exploring the many factors driving the trends. Despite the heightened desire for HR leadership and expertise in the boardroom, the prevalence of new directors with CHRO experience actually declined by 30.8% from 2.6% to 1.8% in 2023. The decline comes as a bit of a surprise, particularly after the prevalence of new directors with CHRO experience jumped more than 73% in 2022.

Following the aftermath of the COVID-19 pandemic and social unrest from the George Floyd murder, many companies made public commitments to address various human capital issues, such as those related to diversity, equity and inclusion (DEI) initiatives, talent development, and boosting corporate culture.

Of course, the majority of these types of programs fall under the purview of the CHRO, making the presence of individuals with CHRO experience on boards crucial for informed strategic decision-making. This may explain the spike in new board appointments of candidates with CHRO experience in recent years.

However, over the past year, numerous companies have scaled back their human capital initiatives, largely in response to economic downturns. For example, technology giants Meta and Google reduced their DEI programs in 2023, despite having previously committed to significant post-pandemic changes. Both companies also cut back on certain talent development programs. As influential industry leaders, Meta and Google’s actions may signal a broader trend. While it would be speculative to directly link the slowdown in appointing directors with CHRO experience to these developments, it’s certainly a trend worth monitoring.

With all that said, despite the drop in new board appointments with CHRO experience, the overall percentage of Russell 3000 directors with CHRO experience increased by 22.2% from 0.9% in 2022 to 1.1% in 2023. It’s clear that companies still value the presence of HR leaders in the boardroom to some degree, even in light of recent shifts.

The evolving role of CHROs on corporate boards reflects the complex dynamics between talent management and broader business strategies. While the decline in new board appointments of directors with CHRO experience in 2023 may raise questions, it’s essential to recognize the ongoing value these leaders bring to the table.

The overall increase in the percentage of Russell 3000 directors with CHRO experience suggests that, even amidst economic shifts and a reevaluation of human capital initiatives, the expertise of HR leaders remains critical to shaping the future of public companies. As companies continue to navigate an uncertain landscape, the strategic insights of CHROs and other HR leaders will likely become increasingly vital in driving long-term success and fostering resilient corporate cultures.