Aswath Damodaran 18
!Application Test: Who’s on board?
! Look at the board of directors for your firm. Analyze
- How many of the directors are inside directors (Employees of the firm, ex-
managers)?
- Is there any information on how independent the directors in the firm are from the
managers?
You can usually find this information for your firm in the 14-DEF filing that all
firms in the US have to make with the SEC. If you have a non-US firm, this
becomes more difficult to do. While you can usually find the names of the
directors from the annual report, you may have a difficult time finding out the
linkages (and potential conflicts) these directors may have with the managers of
the firm.
