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.