Boarding gates are crowded with Independent Directors

Aspiring independent directors in Corporate India are facing increasing competition, as there are more applicants than there are spots on the boards. Prime Database indicates that 2,394 businesses listed on the National Stock Exchange (NSE) now have 9,603 Independent Director posts on their Boards. In the meantime, there appears to be a substantial oversupply of Independent Directors, since the Indian Institute of Corporate Affairs (IICA) has 31,151 registered in its database.

While unlisted companies or those listed on other exchanges also require Independent Directors, the demand from these entities is relatively low. The increased visibility, responsibility, and remuneration associated with independent director roles have driven a surge in interest. Several factors have contributed to this trend, including the “board refresh” triggered by directors completing their 10-year terms and the rising need for women independent directors.

“There is definitely an oversupply,” said Vikesh Wallia, Managing Director, boardstewardship.com-a board community platform. “There is an over-sell of training programmes. Besides, there is no data coming from IICA and MCA about the number of Independent Directors required and the number of new directors appointed every year. In the absence of this data, many people sign up and join promising training programmes for independent directors without due diligence on the demand scenario.”