SOURCE: Equilar


May 14, 2013 10:00 ET

S&P 500 Companies With CFOs Serving on Outside Boards Outperform Peers

New Study by Equilar Builds a Case for Board Service as a Valuable Professional Development Tool

REDWOOD CITY, CA--(Marketwired - May 14, 2013) -  A recent study by Equilar, the leader in executive compensation benchmarking and governance research, found that S&P 500 companies with Chief Financial Officers serving on outside boards outperformed companies where the CFO did not serve on an outside board.

As recently reported in The Wall Street Journal article "Boardroom with a View" and, the study explored the prevalence of outside board service among S&P 500 CFOs and the implications on professional development and succession planning processes.

In its Executives on Boards Report, Equilar's analysis showed that companies where the CFO serves on an outside board had a higher median three-year total shareholder return (19.2 percent) than those that did not (15.2 percent). However the majority of CFOs do not serve on outside boards of directors. In 2012, 102 CFOs in the S&P 500 served on an external board, compared to 234 CEOs.

"Companies may be missing a valuable professional development tool for C-level executives, especially as a part of their succession planning processes in preparing potential CEO candidates," said Aaron Boyd, Director of Governance Research for Equilar. "Serving on an outside board provides the opportunity to gain exposure to complementary industry strategies and challenges, learn from experienced board colleagues, and further refine leadership abilities."

The report discusses a wide array of topics, from statistics on the prevalence of board service to key demographic information for these high-profile individuals.

For more details and a complete review of the findings, request a copy of Equilar's Executives on Boards Report by visiting

About Equilar (

Equilar is the leading provider of executive compensation and corporate governance data and measurement tools to corporations, nonprofits, consulting firms, institutional investors, and the media. Using its extensive database, Equilar allows clients to accurately benchmark and track executive and board compensation, equity grants, award policies, and compensation practices. Equilar's C-Suite mapping technology also reveals business networking opportunities by identifying pathways to executives and board members at companies of interest. Equilar's research has been consistently cited by Bloomberg, The New York Times, The Wall Street Journal and other leading media outlets.

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