The total number of independent directors (IDs) has decreased in 2020 as compared with 2019 and 2018, and the reduction is mainly on account non-appointment of directors on boards of state-owned entities, according to a report.
The total number of IDs reduced to 2,249 in 2020 as against 2,396 in 2019 and 2,494 in the previous year, said the report by Institutional Investor Advisory Services India Limited (IiAS) based on the study of the board composition of NIFTY 500 companies as on December 31, 2020.
“This reduction can mainly be attributed to the reduction in the number of IDs in PSU companies. The other reason has been churn in the companies forming part of NIFTY 500 over this period,” it said.
The outgoing companies in the NIFTY 500 in 2020 when compared to 2019 had 208 IDs on their boards while the incoming companies had 188 directors, whereas when compared to 2018, the outgoing firms in 2020 had 395 IDs on their boards while the incoming ones had 331 IDs, it said.
The PSUs forming part of NIFTY 500 had 133 fewer IDs in 2020 compared to the earlier year, it said, adding, there were 72 PSU companies as part of the NIFTY 500 in 2019 and 2020.
