Executive Watch

Over Board

Research firm Equilar recently released a report that stirred-up the investment community by virtue of its report that CEOs who serve on two outside boards earn median income of $13.6 million while CEOs who serve on one outside board earned 5.6% less, and those who did not serve on an outside board earned 12.9% less. More interesting, and troublesome to shareholders, was the performance of companies where the CEO served on two outside boards. On average those companies saw median one-year total return of 8.2% versus 15% for companies where the CEO was sticking to his knitting and not serving on an outside board. There are a lot of variables when evaluating CEO performance, but these statistics are of real concern with investors and they are now voting against CEOís who serve on too many boards. Stay tuned on this issue, as itís likely to command more attention over the next couple of years.

By Anthony LoPinto | Executive Watch
Anthony LoPinto
Global Sector Head, Real Estate
Korn/Ferry International
Executive Bio

For more than a decade, Anthony LoPinto has been serving his clients with deep knowledge and perspective on talent needs and organizational challenges to public and private companies - knowledge gained from a 25-year career in real estate. Prior to his current position, he founded and served as chief executive officer of a boutique real estate executive search firm, where he oversaw offices in New York, Chicago, Washington, DC, San Francisco and Los Angeles. He has successfully led several high profile search engagements for chief executive officers, directors and a wide-range of executive level positions across all industries and sectors.

He earned a Bachelor of Arts degree in European history from Loyola University in Chicago.

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