CPA Canada: ‘It’s never too early for a CPA to become a board member’

CPAs have long been a valued presence on corporate boards and audit committees in Canada. But as a landmark study by CPA Canada and KPMG suggests, many CPAs wait until they are approaching retirement or later to become directors. This is a missed opportunity, according to Ismail Akhter, CPA, director, tax & audit, Member Development and Support at CPA Canada and study lead co-authors Wendy Kei, FCPA, and Deborah Rosati, FCPA. 

“Given the value they can bring to the table, and the career benefits that board membership can bring, CPAs should consider becoming board members much earlier in their careers,” says Akhter. 

Initiated in 2021, the KPMG/ CPA Canada study examined the involvement of CPAs on boards and audit committees at 751 Canadian publicly traded companies from the S&P/TSX Composite Index—the intention being to provide a snapshot of the current state of CPAs in corporate governance roles.  
 
The study revealed some impressive stats. For example, CPAs occupy 22% of all board seats at the public companies studied and 88% of the companies have at least one CPA on their board.  
 
While recognising the numbers are encouraging, Rosati believes there are areas where progress could be made. “For example, I thought CPAs should occupy more than 22% of all board seats, given the value they can contribute,” she says. 

Kei agrees, adding that the study also shows that 30% of the respondents do not have a CPA as their audit committee chair. “I find that concerning, given that audit committees need to consider everything from cybersecurity to compliance, financial reporting and more.”  

According to the study, the average age of CPAs on boards is 63—indicating that CPAs wait until they are nearing retirement to become board members.  
 
There is, of course, a reason for this: as Kei points out, “Some CPAs are not able to sit on the board of a publicly traded company while they are a partner of an audit firm or prohibited by the company that they work for. This means they can only join the board of a subsidiary, a non-profit or Crown corporation. And most audit firm partners retire at the age of 60 to 62. In addition, CPAs who are working in industry have to obtain permission from their CEO and the board chair. So many people wait until they retire to avoid these conflicts.”

Despite the restrictions, however, Kei and Akhter and Rosati all stress that there are many ways for CPAs to gain board experience earlier in their careers. “You definitely don’t have to wait until you retire or are approaching retirement,” says Akhter. “There are lots of boards, especially in the not-for-profit sector, where you can contribute much earlier and gain valuable experience at the same time.” 
 
Rosati agrees that the not-for profit route is a good one: “One of our raisons d’être as CPAs is to give back to the community. That’s why experience on not-for-profit boards can be very valuable and it's never too early to start.” 
 
There are many advantages to joining a board earlier rather than later. As Kei explains, “Serving on an external board gives you a valuable perspective from the other side of the boardroom table. “Instead of taking a management view, it’s now your role to review the documents and ask management the questions. For that reason, your organisation stands to gain from the insight you develop as well.”  
 
The external recognition gained as a member of a board can also enhance your prospects in your own organisation. “Being appointed [to a board] serves as a real seal of approval—a sign of the credibility you have gained outside your organisation. It boosts your career and helps you develop your governance leadership skills,” says Rosati.

Joining a board can also provide you with valuable professional development opportunities, says Akhter. “It can allow you to learn new skills and gain exposure to different industries. It can give you leadership experience, help you grow your professional network and provide an opportunity to give back to your communities and the profession itself.” 

Akhter adds that there are many professional development options for CPAs who want to consider board membership. For example, CPA Canada holds an annual Conference for Audit Committees, has introduced an in-depth Audit committee certificate  program, and produces an extensive array of thought leadership and guidance materials on the subject. There are many ways for CPAs to prep for a board role, experts say. 

While the stats on board composition in the study are encouraging, the study shows a greater recognition of the diverse skills CPAs can bring to the table is needed. “CPAs are known for their financial expertise, but it is important to note that they are also well versed in risk management, compliance, ESG and strategy development—all of which can be invaluable to the board and the organisation as a whole," says Akhter. 

This recognition can sometimes be gained with time. For example, Kei says that when she began her board journey, she was pigeonholed into the mining industry because she had gained her experience there. “But I kept telling recruiters my skills were transferable to different industries,” she says. “Now I have had the pleasure of chairing the compensation and governance committee.” 
 
Rosati had a similar experience. “It can take time to transition into a new role. It's a matter of helping others understand where you want to go—not where you've been.”

The study showed an encouraging trend in terms of representation by women on boards. Just over one in four (26%) of CPAs on boards are women, versus 22% for the rest of the companies studied. The numbers are even higher for audit committees, with more than one in four (29%) of the CPAs on such committees being women. 
 
“I was thrilled to see these figures,” says Kei. “They don’t really surprise me, though, because if you're looking for diversity on a board, there are a lot of female CPAs who are highly qualified.”

As a long-time board member and founder of Women Get On Board, a member-based company that connects, promotes and empowers women to corporate boards, Rosati agrees.  “Since I have financial expertise, I often get tapped on the shoulder. The conversation goes like this: ‘We need a woman on our board. We need someone to chair the audit committee.’ Those are the starting points. Once I’m on the board, things may evolve, but that is the way it starts, and that’s fine.”  

While progress may have been made in terms of the number of women on boards, Rosati and Kei say this does not necessarily apply to other types of diversity. “It’s only recently that Canadian Business Corporations Act brought in a requirement to track diversity beyond gender,” says Rosati. “Eventually, though, boards should be able to fine-tune their board requirements to include different factors such as age, race, ethnicity, language and geographical location.” 
 
As Akhter points out, having a diverse board is extremely important, as it brings a variety of different perspectives, experiences and ideas to the table and can attract a broader range of talent. “Just as organisations need to broaden their talent pool to better reflect the diversity of the population, the same principle applies to boards as well,” he says.  
 
Naturally, it is not enough for boards themselves to recognise the diversity of talent they can bring to the table; CPAs themselves need to acknowledge the strength of their own potential contribution. 
 
“No matter what your age, you have valuable skills and perspectives to bring to a board or audit committee,” says Kei. “And your career stands to benefit as well. It’s a win for you, the organisation you work for and the one whose board you choose to join.”