Corporate Governance - Staggerred Boards


Are staggerred boards considered good or bad corporate governance?


A staggered board is good if you are a target of a hostile aquisition.

For example if there are 12 board members and 4 of them are elected each year, it would take at least 2 years to get a majority of votes for an aquirer.

Staggered boards are not preffered from a corporate governance standpoint, because shareholders cant replace the entire board in a single year… they would need to wait multiple years to do so.

So bad corporate gov practive, but good takeover defence