Principal, Board & CEO Services
Leadership
In Europe, the Push to Go Private
More non-executive directors across Europe are angling for seats on private boards rather than public ones—here are a few reasons why.
May 05, 2025
Why Private Board Seats are Becoming Appealing
The newly retired CEO was weighing his options: take a few years off to finally catch his breath, mentor top leaders looking to become chief executives, or serve on a board or two. As he started to consider the third option in earnest, he quickly concluded that if he was going to become a non-executive director, it wouldn’t be at a publicly traded company.
Across Europe, experts are seeing an emerging trend: Many top candidates for board seats are seeking to join family-owned or private firms rather than companies listed on a stock exchange.
“There’s a lot of interest in the private route these days,” says Clare Carpenter, a principal in Korn Ferry’s Board and CEO Services practice in London.
Part of what’s driving this is the simple fact that a growing number of European-based companies have gone private in recent years. Last year in the United Kingdom, for example, more than 40 companies delisted from the London Stock Exchange—a 10% increase from the previous year, and the highest number since 2010. Experts also say that increased governance and regulations have made a public board member’s job—and time commitment—much more demanding. According to one report, directors spend about 320 hours annually on public boards, compared to 150 hours on private ones.
And then there’s the reality that public-company directors face heightened scrutiny due to regulatory oversight, shareholder activism, and public visibility—all of which has increased in recent years. “There’s more liability than there used to be, and a lot of directors don’t want to deal with it,” says Kaare Sand, managing partner, EMEA, for Korn Ferry’s Board and CEO Services practice. Of course, private board members still are subject to fiduciary duties and can be held liable, but often have a lower risk profile.
To be sure, private board seats aren’t appealing to everyone. For one thing, they typically pay less—an average of about $30,000, as against $100,000 for board members of public companies. Jane Edison Stevenson, vice chair of Korn Ferry’s Board and CEO Services business, says she does see the appeal of private boards in some cases, even if she hasn’t observed an uptick in directors seeking such appointments in the US. “There’s a lot less risk, so directors can focus more on business and growth,” she says.
Indeed, being able to focus on operational or growth strategies instead of being mired in compliance is appealing, especially in today’s environment. Regulations, in particular, have “hamstrung what the board can do,” says Doug McAllister, a London-based senior client partner in the Board and CEO practice.
Ultimately, the deciding factor for many prospective directors may be sheer supply and demand: In the UK, for example, there are significantly more private companies—more than five million—compared to the 1,700 or so listed on the London Stock Exchange. And in Italy? Only 500.
For more information on how to get on a board, read our tips here.
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