Two-fold increase in mandates for independent director searches

According to leading executive search and leadership advisory firms there is a surge in demand for qualified independent director. Independent directors are in demand because many non-executive directors are approaching the end of their maximum ten-year term, which is coinciding with the current fiscal year. As a result, the number of independent directors seeking to join new company boards has also doubled, making it a busy period for top search firms.

Under the Indian Companies Act 2013, independent directors are allowed a maximum of two terms, each lasting five years. As per a study conducted by executive search firm Native, over 800 independent directors will have to retire by March 2024 across 680 listed companies with a market cap exceeding Rs 5000 crore. Additionally, Native estimates that there will be more than 1200 potential vacancies for independent directors across listed companies, including firms with a market cap below Rs 5000 crore.