Equilar recently undertook a study of chief financial officers (CFOs) at large-cap companies over the past three years to identify how many also serve on other public company boards of directors.
The study had two key findings:
It’s important to note that pay and performance in this study represent correlations, not causation. Nonetheless, the study represents an analysis of CFOs who have served their companies for three consecutive years, whether or not they were on another board of directors, and notes differences in pay and performance for those groups of executives. The findings raise important questions for investors and companies when evaluating executive board commitments, and what risks that may pose.