Pick Your Board Wisely: CEO Outside Board Directorships and Managerial Ability
Canan C. Mutlu and Sunay Mutlu
Coles Working Paper Series, FALL17-04, November 2017
Overview Do serving on outside boards advance CEO managerial ability? Against the backdrop of continuous debates on the value of CEO outside board directorships, we propose that outside board service limits CEO managerial ability in recent times because of the increasing executive job demands, heightened directorial responsibilities, and the changing nature of the corporate elite network. However, this adverse effect might be mitigated by the insights and resources provided by the host board and the home board’s monitoring and alignment mechanisms.
24 | Working Papers
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