The presence of long-tenured independent directors on corporate boards can be an effective governance mechanism that leads to greater performance and reduced exposure to outside risks. However, there is a need for balance. Boards should not have too many long-tenured directors, otherwise they risk entrenchment. Maintaining one or two is crucial for providing stability, knowledge, and credible oversight. Long-tenured directors should be viewed as part of a co-evolutionary process with the firm, rather than subject to strict tenure limits.
