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.