Abstract
This paper examines the impact of board composition on corporate performance and executive remuneration in large Australian companies. In particular, we focus on the proportion of independent directors on the board. Whether corporate performance is assessed using accounting or share-price measures, our studies produce no consistent evidence that independent directors either add or destroy value. Similarly, the studies show no link between the proportion of independent directors on the board and the level or manner of remuneration of the CEO. We conclude that any benefits flowing from the introduction of prescriptive corporate governance requirements may well be outweighed by the compliance costs.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
