George M. Anderson and David Chun, Harvard Business Review, April 2014
Some criticize boards for leaving the evolution of their composition to chance, allowing director retirements to dictate the pace of change. Support for annual director elections and for increased transparency around director nominations suggests that some shareholders would like to see more turnover. Is there evidence that companies and shareholders actually benefit when boards add fresh blood? If so, how much change is desirable? The analysis done by this article’s authors to find answers to these questions has revealed some intriguing patterns. […read more]