New research from the University of Notre Dame reveals a little-explored reason why board members sometimes resign: personal politics.
Directors are more likely to quit when they don’t share a new CEO’s ideology but will stick around when there’s political alignment, according to a study of S&P 500 companies led by John Busenbark, a professor of management at Notre Dame’s Mendoza College of Business. More than that, the flight response from board members who dislike a CEO’s politics is much stronger than the retention effect for directors who share a leader’s ideology, a finding that supports past psychological research.
