Abstract
Despite ubiquitous diversity pledges, many corporate boards still closely resemble those of the past, in that they are largely composed of directors with distinct elite backgrounds. Our study asks why some firms have more elite boards than others. We draw on elite theory and organizational change and stability literature to argue that the elite's inherent propensity to self‐perpetuate is stronger in firms that are characterized by stability. Our empirical results, based on a Japanese sample, support our claim. We add to the debate on board composition by concluding that the old elite is likely to retain its importance in the future in firms that provide a suitable setting for its perpetuation.
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