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Are long-tenure directors bad for effective corporate governance?

A set 9-year limit has its advantages, but can also fail to achieve its objectives.

A study of S&P 500 firms from 2003 to 2013 found that more board membership changes, from incoming and outgoing directors, led to lower firm performance, suggesting disruptive effects on board dynamics.

THE length of director tenure, and therefore the value of setting term limits, has emerged as a contentious topic of debate in recent years. Early this year, the Singapore Exchange and the Corporate Governance Council launched a public consultation for amendments to the 2012 Code of Corporate...

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