Posted by Michael McCauley, Florida State Board of Administration, on Wednesday, February 14, 2018
Editor's Note: Michael McCauley is Senior Officer, Investment Programs & Governance, of the Florida State Board of Administration (SBA). This post is based on a publication from the Florida SBA by Mr. McCauley; Jacob Williams, Corporate Governance Manager; and Tracy Stewart, Senior Corporate Governance Analyst.
The latest publication on corporate governance from the SBA analyzes the number of directorships at U.S. companies and its correlation with company stock performance. The investment study reviews “over-boarded” directors at U.S. companies within the Russell 3000 stock index and finds a strong inverse relationship between the level of directorships and total shareholder return (TSR) across the 1, 3, and 5 year time periods ending October 2017.