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Seven myths of boards of directors—part II

Richard M. Steinberg | May 24, 2016

A few months ago, the director and a researcher at Stanford University’s Corporate Governance Research Initiative issued a paper with the above title, confronting some of the more common “myths” surrounding corporate governance. Last month, we looked at several of these “myths,” and here we examine a few more—along with what’s really behind them.

Myth: Directors face significant liability risk

Researchers: A 2009 survey found two-thirds of directors believe their board-related liability risk has increased in recent years, with 15 percent having thought seriously about resigning due to concerns about...

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