Are the professional networks of corporate directors valuable? More connected directors may have better information and more influence, which can increase firm value. However, these directors may also be busy or spread value-decreasing practices. To separate the effect of director networks on...

We study the relation between company value and the interplay between CEO power, CEO equity incentives and the friendliness of the board of directors. Following Bebchuk, Cremers and Peyer (2011), we measure CEO power as the proportion paid to the CEO of the total compensation paid to the top...