Senior executives navigating the transition from executive to Non-Executive Director roles face a pathway that's less organic and more deliberate than many expect. Derwent delved into this important topic with 50 senior executives in Brisbane last week at our Pathway to the Boardroom event. Despite different journeys throughout their executive careers and into a Board portfolio, our speakers, Susan Forrester AM and Teresa Dyson , shared their wisdom across the decisions that support your transition to Director, the importance of leveraging networks across your career, value addition and the shift from an operating mindset, and the importance of thorough due diligence. Key Themes & Takeaways Pathway from executive to non-executive The pathway is not easy during transition from an executive career. You need to be “eyes wide open and have a thick skin” – there will be individual and market circumstances that will test your resolve and motivations. A deliberate and formal transition to a Board career can make the path clearer – especially for the networks that are trying to advocate for your Board candidacy. Many individuals expect that they will organically end up on boards after their executive career; however, in reality it’s a long process that requires patience, intent, and effort. The power of your network Leverage your network of experience and draw on different periods of your career journey for introductions and conversations that might lead to Board opportunities. Map out a plan of who you should be talking to, including existing Board members, other well-networked senior executives, Board communities (such as AICD), and relevant experts such as Board search partners. By letting broad networks know of your intention and desire to join Boards, it can provide opportunities to get a foot in the door. Get out there and plant a lot of different seeds! The importance of your value-add proposition Many aspiring Board Directors can tick a lot of the boxes when it comes to the criteria for Board candidacy, but the difference can be the fit to specific organisations. Your value addition can be identified across various facets, including your functional or industry expertise, your broader career achievement or success (such as major transactions, industry changes, working in different settings or ownership structures, etc), and personal or ethical alignment. Part of developing your individual proposition is sharing the unique elements of your profile with your networks, including the personal experiences and drivers that can be as important as your professional experience. Director mindset versus executive mindset New Directors often try to prove their executive and sometimes technical expertise, and need to make the shift to a mindset of governing over managing – “noses in and fingers out”. There’s a style of thinking from an executive career that allows you to draw on your experience and add real value to a Board setting. A change in mindset is required in order to add value in the critical areas for a Board member, such as setting and agreeing strategy alongside management, managing risk, and selecting the CEO. Conducting due diligence as you explore Board opportunities Due diligence is mutual – both for companies bringing on a Board member, and Board members looking to join an organisation. Exploration may include reading previous annual reports, talking to brokers or customers, and most importantly meeting the Chair, committee members, and other Directors if possible. Each Board has its own risk appetite, so it’s important to understand the values and risk alignment. Building relationships with other Board members to have open and honest conversations can take time and trust. “Boards are like a team – they don’t train together often, but they come together to play”. Our thanks to Michelle Gardiner , Managing Partner from our Board practice, for hosting this event, and to our guest speakers and attendees for their valuable contributions. Continue the conversation We'd love to hear your perspective on this topic! For further insights or to explore how Derwent can help you or your organisation, connect with our team at brisbane@derwentsearch.com.au . To express your interest for future Derwent events, please reach out to us at events@derwentsearch.com.au .

Australian boardrooms are confronting an unprecedented convergence of regulatory complexity, technological disruption, and stakeholder scrutiny. With mandatory climate reporting, rising cybersecurity threats, and AI disruption accelerating across industries, boards are making decisive talent moves to reposition their organisations. The focus is shifting from traditional oversight to strategic, innovative leadership in an increasingly complex environment. Moving from shareholder-only management to multi-stakeholder governance has become central to these strategies. Critical Talent Trends Artificial Intelligence: The New Governance Frontier – AI has emerged as perhaps the most significant governance challenge facing Australian boards with immediate implications. Board members need to ask two fundamental questions: What can AI do for our organisation? What risks does AI bring? Yet many Australian boards remain unprepared for voluntary AI reporting recommendations, opting to wait for potential mandatory frameworks in the future. This represents a fundamental shift from traditional technology oversight, now requiring directors capable of navigating complex AI implementation, risk assessment, and strategic deployment across business operations. Cybersecurity: Critical Board Responsibility – the cybersecurity landscape presents stark challenges that demand board-level attention, with Australian data revealing the magnitude of this threat: cybercrime reports reached over 87,400 in FY24, with incidents logged every six minutes. We're witnessing emerging directors with strong commercial experience and contemporary cyber skills securing board positions ahead of more experienced candidates who lack these specialised capabilities. This pattern suggests a growing recognition of cyber expertise as increasingly valuable in boardroom composition, reflecting the evolving threat environment and the rising importance placed on directors who possess relevant digital risk management capabilities . Climate Governance: From Aspiration to Action – climate governance has fundamentally shifted with the AICD's analysis showing that Australian boards are moving from aspiration and ambition to action, but progress is uneven. The regulatory framework is now concrete, with the introduction of mandatory climate reporting under globally-aligned standards representing a major milestone and requiring boards to increase oversight of climate risk, transition strategy, and scenario analysis. This transition demands directors who understand both the technical aspects of climate reporting and the strategic implications of sustainability transformation across business models. Board Diversity: Progress and Challenges – substantial progress has been made in gender diversity, with women representing nearly half of board appointments to ASX 300 boards over the last two years and holding 35% of ASX board positions overall. However, broader diversity challenges remain significant. There is still work to be done with 91% of ASX 300 Directors having an Anglo-Celtic background and only six openly LGBQTIA+ ASX directors. Consensus is forming around the AICD's and 30% Club's objective of securing 40/40/20 (40% men/40% women/20% of any gender) representation, but investors are applying pressure to see broader ethnic diversity that will better reflect businesses' customer bases and operational footprint. Shareholder Pressure – the shareholder activism landscape has intensified significantly, with Qantas’ shareholders rejecting the company's remuneration plan with a near-record 82.9% opposition following corporate scandals, demonstrating how reputation directly impacts board accountability. This escalating scrutiny requires directors who can navigate complex stakeholder relationships while maintaining strategic focus and delivering sustainable performance outcomes. Corporate Culture Accountability – corporate culture accountability has transformed from aspiration to a regulatory requirement. The events at Qantas, Mineral Resources, WiseTech and Nine Entertainment demonstrate that investors will hold boards accountable for cultural failures. Industry Super Funds have pioneered this change, with Aware Super requiring its fifty largest investments to answer eleven questions focusing specifically on conduct risk. This reflects broader stakeholder scrutiny, with over 10% of ASX 300 businesses receiving votes against their remuneration reports last year – the largest proportion since legislation was introduced.

Senior executives navigating the transition from executive to Non-Executive Director roles face a pathway that's less organic and more deliberate than many expect. Derwent delved into this important topic with 50 senior executives in Brisbane last week at our Pathway to the Boardroom event. Despite different journeys throughout their executive careers and into a Board portfolio, our speakers, Susan Forrester AM and Teresa Dyson , shared their wisdom across the decisions that support your transition to Director, the importance of leveraging networks across your career, value addition and the shift from an operating mindset, and the importance of thorough due diligence. Key Themes & Takeaways Pathway from executive to non-executive The pathway is not easy during transition from an executive career. You need to be “eyes wide open and have a thick skin” – there will be individual and market circumstances that will test your resolve and motivations. A deliberate and formal transition to a Board career can make the path clearer – especially for the networks that are trying to advocate for your Board candidacy. Many individuals expect that they will organically end up on boards after their executive career; however, in reality it’s a long process that requires patience, intent, and effort. The power of your network Leverage your network of experience and draw on different periods of your career journey for introductions and conversations that might lead to Board opportunities. Map out a plan of who you should be talking to, including existing Board members, other well-networked senior executives, Board communities (such as AICD), and relevant experts such as Board search partners. By letting broad networks know of your intention and desire to join Boards, it can provide opportunities to get a foot in the door. Get out there and plant a lot of different seeds! The importance of your value-add proposition Many aspiring Board Directors can tick a lot of the boxes when it comes to the criteria for Board candidacy, but the difference can be the fit to specific organisations. Your value addition can be identified across various facets, including your functional or industry expertise, your broader career achievement or success (such as major transactions, industry changes, working in different settings or ownership structures, etc), and personal or ethical alignment. Part of developing your individual proposition is sharing the unique elements of your profile with your networks, including the personal experiences and drivers that can be as important as your professional experience. Director mindset versus executive mindset New Directors often try to prove their executive and sometimes technical expertise, and need to make the shift to a mindset of governing over managing – “noses in and fingers out”. There’s a style of thinking from an executive career that allows you to draw on your experience and add real value to a Board setting. A change in mindset is required in order to add value in the critical areas for a Board member, such as setting and agreeing strategy alongside management, managing risk, and selecting the CEO. Conducting due diligence as you explore Board opportunities Due diligence is mutual – both for companies bringing on a Board member, and Board members looking to join an organisation. Exploration may include reading previous annual reports, talking to brokers or customers, and most importantly meeting the Chair, committee members, and other Directors if possible. Each Board has its own risk appetite, so it’s important to understand the values and risk alignment. Building relationships with other Board members to have open and honest conversations can take time and trust. “Boards are like a team – they don’t train together often, but they come together to play”. Our thanks to Michelle Gardiner , Managing Partner from our Board practice, for hosting this event, and to our guest speakers and attendees for their valuable contributions. Continue the conversation We'd love to hear your perspective on this topic! For further insights or to explore how Derwent can help you or your organisation, connect with our team at brisbane@derwentsearch.com.au . To express your interest for future Derwent events, please reach out to us at events@derwentsearch.com.au .