Enhancing Board Succession in South Africa

In South Africa, boardrooms continue to be widely perceived as the domain of legacy networks, with long-tenured board members often drawing on familiar circles to fill vacancies—reappointing seasoned board peers rather than opening doors to new voices. This insular approach to board appointments has two major consequences: It perpetuates the risk of groupthink, and it limits the infusion of new perspectives.  

As regulatory pressures mount and emerging technologies bring about more change, boards must move beyond these habits of leaning on established networks. Board succession is not a compliance exercise—it’s a strategic necessity. To keep pace with today’s complex business environment, boards must take a more intentionally broadened approach—one that better reflects the complexity of today’s business environment and brings in younger, diverse and dynamic voices.  

According to Egon Zehnder's Global Board Inclusion Study, 94% of directors say embracing different viewpoints is a strategic priority for their boards, and 90% agree it leads to better decision-making. Yet, many boards still struggle to find the right candidates and to adapt governance practices that could lead to a more regular cadence of board seat turnover.  

In South Africa, this challenge is compounded by a limited pipeline of board-ready talent. Board composition, at times, reflects an “Old Boys’ Club,” where long-tenured board members frequently select individuals from their existing networks or “keep it safe” by appointing the same known candidates to prominent boards. This, in turn, raises concerns about overboarding or potential conflicts of interest, as a board chair of a leading South African Bank pointed out, “Finding qualified board members who are neither over-boarded, conflicted nor merely celebrity businesspeople is a significant challenge.”  

At the same time, younger executives are increasingly being drawn to portfolio careers, often leaving traditional management roles before gaining the depth of experience and exposure needed for board service. As one director from a JSE-listed company noted, "Being a board member is as much about learning from the company as it is about giving back to the company." Conversely, more experienced board members are in high demand and often serve on multiple boards, again, raising concerns about over boarding and potential conflicts of interest. 

To break free from practices that inhibit fresh perspectives and to embrace a more inclusive future, South African boards must rethink their succession and governance practices. This can be difficult to do without objective, external support. Engaging trusted advisors like Egon Zehnder can transform board succession processes, fostering a pipeline of diverse talent and unlocking fresh perspectives. In this article, we draw on insights from our deep local experience, interviews with board chairs and directors, and our proprietary knowledge. In our experience, by prioritising diversity of thought and experience, organisations can enhance governance and drive better outcomes. 

To address these challenges, companies can implement several strategies to enhance board succession:

A rigorous board succession process that is anchored in the company’s strategy and marketing context can help boards identify the right mix of skills, perspectives and leadership styles needed to improve overall representation. This includes: 

• Well-structured, regular board effectiveness reviews (BERS) 
• Clear role specifications and structured assessments, including psychometrics, cultural fit evaluations, and references 
• Engaging a well-mandated Nominations Committee to assess potential candidates thoroughly and using a professional search and leadership advisory firm to manage this process 
• Transparent onboarding and ongoing mentoring to accelerate the integration and contributions of new board members 

It is also important to keep in mind that board succession should be a regular agenda item—not something that is only discussed when a term limit is growing closer or a board member is retiring.  

Companies should focus on cultivating a medium- to long-term pipeline of directors. This means actively (and regularly) identifying high-potential candidates who could bring an expanded range of experiences to the board and investing ample time in their development to ensure they can become confident, successful contributors. Some strategies to build such a pipeline include:  

• Appointing emerging leaders to subsidiary boards. This provides them with a safe learning environment to gain experience without the risks associated with main board responsibilities. Additionally, this setting offers opportunities for mentorship from experienced chairpersons and insights into governance practices. As a board member of a leading financial institution remarked, “By appointing less-experienced board directors to a subsidiary board, we provide them with time to understand the dynamics, culture, and transition into the role.” 
• Pairing new directors with experienced mentors to build confidence and foster an understanding of the board’s unique dynamics and culture.

Diversity should not be limited to demographic factors; it should also encompass diversity of thought. Including international candidates in the selection process can bring these valuable perspectives that will enhance board discussions and decision-making, even in a South African context. Additionally, leaders from other sectors may also add relevant lessons that may not be apparent for “lifers” in one industry. 

Our Global Board Diversity Tracker recently found that globally, 57% of boards have prioritised recruiting directors with different identities, and 41% have added functional or subject-matter experts (e.g., AI, sustainability, geopolitics) to meet evolving demands. 

Boards need to foster a culture where all voices are heard and valued. Much of the responsibility to set the tone for this type of culture rests with the board chair, and there are a few key actions they can facilitate: 

• Develop a robust board leader succession plan, and rotate committee leadership to broaden participation and avoid entrenched power dynamics. 
• Create space for dissent and debate, which directors increasingly see as a strength, not a threat. As one board member noted: “Friction is not a bad thing—diversity isn’t always more comfortable, but it does drive better business outcomes.” 

The evolving landscape of corporate governance in South Africa requires a proactive approach to board succession planning. This means actively moving away from practices that no longer serve and applying more inclusive and dynamic intention to governance.  

By engaging trusted advisers like Egon Zehnder, non-executive directors can ensure that their boards are not only compliant with regulatory expectations, but that they are also equipped to thrive in an increasingly complex business environment that demands new perspectives and fresh approaches. Embracing diversity in all its forms will ultimately lead to more effective governance and better outcomes for organisations. It is essential that boards break free from the confines of traditional selection practices to lead in a future where success will depend upon expanded representation and inclusive decision-making. 

In an era of rapid change and increasing complexity, organizations face the critical challenge of ensuring effective leadership at the board and executive level. Egon Zehnder, a preeminent global executive search and leadership advisory firm, stands at the forefront of addressing this challenge.  

With a rich history, a commitment to excellence, and a deep understanding of the intricacies of board dynamics, Egon Zehnder provides unparalleled support to organisations navigating the complexities of board succession. 

Egon Zehnder’s Potential Model can effectively enhance board succession processes in South Africa by identifying and nurturing high-potential younger directors. The Potential Model comprises four key elements: curiosity, insight, engagement, and determination.  

Founded in 1964, with over 67 offices in 36 countries, the firm has cultivated a reputation for excellence, discretion, and a client-centric approach. Egon Zehnder’s global footprint is complemented by its local expertise. Each office is staffed with consultants who possess deep knowledge of their respective markets.