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
Greater agency costs imply a greater need for monitoring by outside directors
on the board.
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.