Research finds that while chief executives in the US with external directorships earn more, returns for shareholders fare less well.
US chief executives with no external board directorships earn better returns for their shareholders than those with seats on external boards, according to new research.
Research firm Equilar studied the S&P500 and found that, of the 37 companies where CEOs held outside directorships, the one-year total return on stocks was 8.2%. For CEOs who held a single or no additional board position, that figure was a little more than 15%.
The research also found that CEOs with two or more external directorships made $13.6m from their main employer, while those with a single additional board position, or none at all, took home 5.6% and 12.9% les
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