It's not what you know, it's who you know: CEO‐director social connections and the effectiveness of boards of directors

Abstract

Purpose

The aim of this viewpoint paper is to discuss the impact of social ties between chief executive officers (CEOs) and board directors.

Design/methodology/approach

This is a viewpoint paper, which looks at social ties between CEOs and board directors.

Findings

The paper finds that diversifying candidate backgrounds and giving shareholders more power in nominating directors might lead to more independent and more effective boards.

Originality/value

The paper discusses the findings of research carried out at Judge Business School, which suggests that a broader selection committee for appointing directors increases the likelihood of an effective, impartial board.

Citation

Dang Nguyen, B. (2013), "It's not what you know, it's who you know: CEO‐director social connections and the effectiveness of boards of directors", Strategic Direction, Vol. 29 No. 3, pp. 3-4. https://doi.org/10.1108/02580541311304553