The Managerial Thesis Revised: Independent Directors and the CEO 'Directorate'
50 Pages Posted: 19 Nov 2007
Date Written: July 2006
Abstract
This paper makes two claims. The first posits that CEOs, active and retired, have disproportionately filled the independent director positions mandated by Sarbanes-Oxley and the private exchange reforms. The second builds from this observation: Corporate control has shifted from focal firm managerial teams to a CEO-inter-corporate directorate. To test these hypothesis, we examine the board demographics of those publicly-traded corporations whose CEOs are members of The Business Roundtable, the premier lobbying organization representing the interests of U.S. corporate managers. We constructed our hypotheses to resolve conflicting assessments among agency theorists and corporate strategy scholars on independent directors' promised redemptive effects for resolving issues of excessive CEO pay and reconciling CEO pay for performance.
Keywords: corporate governance, CEOs, boards of directors
JEL Classification: G30, G34, K22, M10
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Are CEOS Really Paid Like Bureaucrats?
By Brian J. Hall and Jeffrey B. Liebman
-
Are CEOS Really Paid Like Bureaucrats?
By Brian J. Hall and Jeffrey B. Liebman
-
The Other Side of the Tradeoff: The Impact of Risk on Executive Compensation
-
Good Timing: CEO Stock Option Awards and Company News Announcements
-
Good Timing: CEO Stock Option Awards and Company News Announcements
-
The Use of Equity Grants to Manage Optimal Equity Incentive Levels
By John E. Core and Wayne R. Guay
-
The Other Side of the Tradeoff: the Impact of Risk on Executive Compensation
-
Stock Options for Undiversified Executives
By Brian J. Hall and Kevin J. Murphy