Companies Do Better When Corporate Board Members Aren’t Overcommitted

S&P 500 companies whose directors hold just one board position tend to outperform those where board members are juggling multiple corporate governance commitments. Earnings growth at companies with board members focused solely on one position averaged 14% over the past five years, compared to 11.2% at companies where directors hold more than one board seat, according to a research report from Credit Suisse Group AG. Directors who sit on multiple boards often struggle to divide their time between commitments and the need to develop new skills in response to new business challenges, the report said. Over-committed board members can also run into conflicts of interest.

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