Some corporate governance experts believe that serving on a company's board of directors for an extended length of time diminishes that member's independence from the company's CEO.If this is true, it would tend to

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Serving on a company's board of directors for an extended length of time diminishes that member's independence from the company's CEO. This is because the longer a director serves, the more likely he or she is to become entrenched in the company's culture and to develop personal relationships with top management, including the CEO. As a result, the director may become less willing to challenge the CEO or to act independently in the best interests of shareholders. This can increase the principal-agent problem, which refers to the potential conflict of interest between management (the agent) and shareholders (the principal).

Some Corporate Governance Experts Believe That Serving on a Company's