The majority of outside directors are active or retired CEOs and COOs of other corporations.

Question

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Studies have found that a significant percentage of outside directors in public companies are active or retired CEOs and COOs of other corporations. This is because these individuals bring valuable industry expertise and experience to the board. However, some argue that this can lead to conflicts of interest and an insular, homogenous board composition.

The Majority of Outside Directors Are Active or Retired CEOs