Are Kodak's Outside Directors Wrong to Desert a Sinking Ship?

Abstract:     

This commentary discusses that it is not unusual for non-executive directors to flee their companies in times of crisis and often for flimsy reasons, such as an increasing board workload.

To protect boards from disruptive director departures during tumultuous periods, they should: carefully gauge a director candidate's inherent interest in the firm, attitude toward the director role, and time availability, strengthen their members' commitment to the company by involving them in substantive work and facilitating interactions with different generations of directors and other personnel, and adopt a pragmatic approach when apportioning responsibilities and organizing their activities.

Number of Pages in PDF File: 2

Keywords: board of directors, crisis management, corporate governance

JEL Classification: G34