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March 6, 2017 - Stanford Graduate School of Business

Board Evaluations and Boardroom Dynamics

Taylor Griffin, David F. Larcker, Stephen A. Miles and Brian Tayan

The boards of all publicly traded companies are required to conduct a self-evaluation at least annually to determine whether they are functioning effectively. Research suggests that while many directors are satisfied with the job that they and their fellow board members do, board evaluations and boardroom performance fall short along several important dimensions. We review the current state of board evaluations, and summarize how they can improve.

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