Friends in the Boardroom: Attendance, voting, and turnover

We analyze a unique data set on board activities of individual outside directors contingent on social ties to the CEO. We find that outside directors’ dissents are rare and this is even more so from those with social connections with the CEO. Dissenting outside directors, especially those without connections to the CEO face a significantly higher chance of being replaced. Besides, outside directors with social ties to the CEO tend to participate in board decision less often than independent ones. •Dissent in board is rare and more so from outside directors with social ties to CEO.•Attendance rate of outside directors with social ties is lower than those without.•Absence is to let inside directors have power to make decisions.•Outside directors who have opposed CEO face high turnover risk next year.•CEOs tactically steer composition of boards by retaining only those with social ties.