Added Perspective

Morningstar Funds' Hamacher in op-ed: Boards need term limits

July 12, 2022

Theresa Hamacher, independent chair of Morningstar Funds, has penned a commentary piece for Barron's in which she argues that corporate directors—including mutual fund directors—should have term limits.

 

In the June 23 article, Hamacher maintains that term limits are justified for three main reasons: Directors are not good at self-reviews, directors tend to overvalue tenure and undervalue recent experience, and term limits help generate the turnover that is vital to diversity. What's more, Hamacher maintains that shareholders need to pay closer attention to board policies and practices, particularly at boards that lack diversity.

 

To read the commentary piece in Barron's, click here.

 

 

Most Read

Top of the Agenda - Compensation
IDC: Directors see modest pay increase in 2021

Independent mutual fund director compensation levels increased in 2021, though the year-on-year change was significantly lower than in 2020, according to new data obtained by Fund Board ...

Top of the Agenda - Regulatory
SEC to advisers: Turn over 15(c) documents, info

The Securities and Exchange Commission has begun requesting documentation and information from mutual fund advisers about their funds' 15(c) processes and fees. The Division of Enforcement ...