Board Composition, Quality, & Turnover

This Research Spotlight provides a summary of the academic literature on board composition, quality, and turnover. It reviews the evidence of:

• The appointment of outside CEOs as directors
• The importance of industry expertise to performance
• The relation between director skills and performance
• The stock market reaction to director resignations
• Whether directors are penalized for poor oversight

This Research Spotlight expands upon issues introduced in the Quick Guide Board of Directors: Selection, Compensation, and Removal.