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Photo by Vitaly Gariev

In 2025, global corporations face unprecedented economic, regulatory, and geopolitical shifts. With rising trade negotiations, economic sanctions, and emerging markets reshaping industries, companies can no longer afford a narrow, domestically focused boardroom.

Businesses lacking an international perspective risk falling behind as global markets evolve rapidly. To remain competitive, corporate boards must prioritise international diversity—ensuring they are equipped to navigate the complexities of a connected world.

The Current State of Board Composition

Despite some progress in board diversity, many corporate boards still lack sufficient international representation. Historically, board composition has mainly been homogenous, with directors often chosen from the same geographic regions, industries, and professional networks. In the U.S., corporate boards primarily follow a unitary structure, where a single board oversees governance and management.

In contrast, many European boards adopt a two-tier system separating management from strategic oversight, ensuring a more apparent distinction between executive functions and governance responsibilities.

James Drury III, Chairman and CEO of JamesDruryPartners, a professional advisory firm specialising in corporate board governance and business leadership, notes that 'U.S. corporate boards prioritise shareholder value and management autonomy, while European boards tend to be more formal, emphasising stakeholder balance, board independence, and structured oversight.'

These structural differences illustrate how governance priorities vary internationally—highlighting the need for companies to diversify their boardrooms with directors who bring a global perspective. However, many boards still lack this crucial element, often resulting in decision-making that does not fully account for international risks and opportunities.

Recent data from the 2025 edition of The Weight of America's Boards by JamesDruryPartners highlights a decline in Average Director Weight (ADW) by 3% since 2022. This shift in board composition could impact corporate oversight, emphasising the need for diverse experience and perspectives. Additionally, while women now hold 35.7% of board seats—an 89% increase since 2011—their representation in P&L executive roles remains lower than that of male directors. These trends underscore the importance of broadening the selection criteria for board members, notably to include those with international expertise.

Why an International Perspective Matters for Boards in 2025

A board with internationally diverse directors is better positioned to navigate global market complexities. The modern business environment is shaped by regulatory shifts, economic uncertainty, and technological advancements that transcend national borders.

Drury emphasises that 'boards of global corporations should strive to be in touch with geopolitical realities relevant to the company's overseas operations.' This insight is especially crucial as companies face challenges such as:

  • Regulatory and trade complexities: With fluctuating tariffs and trade agreements, companies operating across multiple jurisdictions require governance that understands international regulatory landscapes.
  • Geopolitical instability: Ongoing foreign conflicts, shifting alliances, and supply chain vulnerabilities necessitate a board that can assess and mitigate international risks.
  • Cultural and market expansion: Companies looking to scale globally benefit from directors who understand regional consumer behaviours, business practices, and regulatory frameworks.

A globally minded board fosters resilience, innovation, and adaptability—qualities that will be indispensable in 2025 and beyond.

How Leaders Can Maximise Board Diversity

Corporate leaders must take deliberate actions to build a genuinely diverse and internationally aware board. Here's how they can drive meaningful change:

  1. Expand the Talent Pipeline: Boards should look beyond traditional networks and tap into global executive talent pools. Engaging with international business schools, leadership development programs, and global industry associations can help identify qualified candidates from diverse backgrounds.
  2. Prioritise Cross-Cultural Competency: When selecting board members, companies should assess candidates' international experience, language proficiency, and cultural intelligence. A director with hands-on experience in foreign markets can provide invaluable insights into consumer trends and regulatory landscapes.
  3. Adopt Inclusive Board Structures: Companies should evaluate whether their governance model effectively supports international perspectives. In some cases, establishing advisory committees with global expertise or adopting a hybrid governance model—blending elements of the unitary and two-tier structures—may be beneficial.
  4. Leverage Technology and Virtual Collaboration: Remote work and digital communication tools have made it easier than ever to incorporate international directors. Boards should leverage these advancements to engage directors from diverse geographic locations, enabling broader representation without logistical constraints.

Takeaway: A Competitive Edge Through International Diversity

Corporate boards must recognise that international diversity is not just a compliance initiative but a strategic necessity in today's business landscape. Drury notes, 'Global perspective will prove even more valuable in 2025, as corporations navigate the impact of tariffs, trade negotiations, newly emerging markets, and foreign conflicts.'

Companies that embrace globally diverse leadership will be better equipped to tackle these types of headwinds and other challenges, such as regulatory shifts or market disruptions. By proactively broadening their perspectives, fostering cross-cultural expertise, and rethinking traditional governance models, boards can position their organisations for sustained global success.

The 2025 Weight of America's Boards report also reveals a growing demand for financial expertise on boards, yet the inclusion of CFOs remains limited. As economic and geopolitical challenges become more complex, companies must ensure their boards reflect the necessary diversity in expertise and geography.

Ultimately, the companies that thrive in the years ahead will acknowledge a simple truth: in an interconnected world, diversity is not just an asset—it's an imperative for effective governance and long-term growth.