Retired
Outside Director, Member of the Board Hirokazu Ishikawa
The process works very well, probably thanks to the cooperative leadership of the president and the board chair, an
outside director.
Using a sample of 688
outside directors appointed to the boards of S&P 500 companies from 2005 to 2010, we find that companies that announce the appointment of an industry expert director earn significantly higher announcement returns than companies that announce the appointment of a new director without industry experience (on average about 0.4% to 0.7% larger).4 This finding is not only statistically, but also economically significant relative to the whole sample of 688 new
outside director appointments (where the overall average two-day announcement return is approximately 0.08%).
So it's no surprise Goebel is methodical and thorough when he begins the selection process for a new
outside director, something he's had in place since the mid-'90s.
On the other hand, low closeness centrality of
outside directors may be interpreted as an indicator that the
outside director is not a member of what Locke (1999) terms the "good old boys' club", and hence has more independence.
The present study uses multiple regression to take account of the inter relationships among
outside director variables.
The circumstances of each case must be assessed individually, but generally a director who has served as interim CEO will not qualify as an
outside director for purposes of Sec.
Nishimuro said the TSE has named Aflac Japan Vice Chairman Charles Lake as its first non-Japanese
outside director since the transformation in 2001.
Rathmann has been appointed executive chairman and John Young will act as lead
outside director. The change in management is appropriate for taking the company forward in a new direction under changing market conditions.
In this case, it may be helpful for the board of directors to designate an
outside director as the principal contact with the CAO and auditors.