Most director policies limiting service on other boards reflect the stated guidelines of the company’s most influential investors and proxy advisors. Disclosure of company-specific board service policies is common to show alignment. While shareholders still show interest in these policies, there is increased interest in understanding the board’s analysis of each director’s ability to devote the time necessary for effective service rather than only a bright-line test. Accordingly, proxies are including more information about the board’s process for considering director time commitments.
Here’s an example from the 2025 Bank of America proxy:
And here’s an example from the 2024 Cardinal Health proxy:
