Beyond Gender: How Executive Search Strengthens Board Diversity and Independence

The review examined board composition through the lens of diversity and inclusion, with a particular focus on how firms are encouraging diversity of thought, gender, experience, and background at board level. The CBI identified a number of gaps across a significant proportion of the firms reviewed and has been clear in its expectation that these findings are actively considered and addressed. Key themes emerging from the review included: 

While these findings stem from the fund management sector, it is unlikely that these challenges are confined to it alone.

Why Diversity Matters at Board Level

At Odgers Ireland, we work with boards across all sectors and understand the critical importance of a diverse, balanced board that brings independent thinking, constructive challenge, and a broad range of perspectives to support the sustainable success of an organisation. As the Institute of Directors highlights, independent directors are essential to effective governance because they bring objective judgement and constructive challenge. However, true independence must be actively demonstrated through behaviour — it should not be assumed based on appointment alone. 

The Risk of Recruiting Through Familiar Networks

Too often, boards rely on Chairs, Company Secretaries, or HR teams to fill director vacancies through their personal or professional networks. While well‑intentioned, this approach inevitably results in candidates with similar backgrounds, experiences, or perspectives — narrowing diversity in its broader sense and increasing the risk of groupthink and unconscious bias at board level. This is where executive search firms play a vital role. A wider search process supports boards in adopting transparent, rigorous appointment practices that genuinely maximise diversity and independence. Odgers Ireland has been partnering with boards for over 40 years and maintains an extensive, actively engaged pipeline of experienced board candidates. Alongside this, we continually invest in building new relationships to ensure our network remains diverse — not only in gender, but in experience, expertise, and perspective.  

Evidence Linking Diversity to Better Decision-Making

The value of diversity has been demonstrated in many studies. One example is the 2026 Harvard Business School research which found that boards with varied professional backgrounds (finance, operations, technology, public service) show higher collective intelligence and ask better strategic questions. However, these benefits only materialise when inclusive working practices are applied, rather than just tokenising diversity. While appointing through personal contacts or professional advisers may appear quicker and more cost‑effective upfront, the hidden costs can be significant. Boards dominated by homogenous thinking are more susceptible to flawed decision‑making, unmanaged risk, and long‑term impacts on performance, reputation, and sustainability. 

The Role of Executive Search in Building Better Boards

The CBI also raised concerns around long‑tenured directors, recommending that independence be formally assessed at least annually, particularly for those serving ten years or more on fund boards. We encourage Boards to remain vigilant in their approach to succession planning. Clear, upfront communication between the Chair and non‑executive directors regarding expected tenure creates the space for orderly, high‑quality transitions — rather than reactive or last‑minute appointments. Getting the right person into a board role can deliver lasting value. Getting it wrong can be costly. 

Looking ahead

The CBI argues that diverse and inclusive boards are better equipped to operate effectively, manage risk, and deliver sustainable outcomes for all stakeholders. Organisations that fail to act on this evidence risk falling behind in an increasingly complex and competitive environment. Against this backdrop, can boards really afford not to use executive search to widen the pool, challenge traditional networks, and build the breadth of experience they need?