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Why 9 Years Is a Lucky Number for Board Director Tenure and Effectiveness

Grumbling about corporate boards — about long-tenured directors too cozy with management, for example — may be inevitable among investors, but new research by a young accounting scholar suggests surprisingly that at least one aspect of corporate organization suits Wall Street fine. Company performance actually rises with board tenure—but only up to a point–indicating there’s a tradeoff between knowledge and entrenchment.

Ben Haimowitz CEO Briefing Newsletter , Governance/Compliance , Leadership & Strategy September 13 2013

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