Staggered Board

AAA

DEFINITION of 'Staggered Board'

A staggered board consists of a board of directors whose members are grouped into classes; for example, Class 1, Class 2, Class 3, etc. Each class represents a certain percentage of the total number of board positions. For example, a class is commonly comprised on one-third of the total board members. During each election term only one class is open to elections, thereby staggering the board directorship.

INVESTOPEDIA EXPLAINS 'Staggered Board'

A staggered board is also known as a classified board because of the different "classes" involved. A staggered board is desirable in many instances of corporate governance because it helps to reduce the risk of a takeover since it would take longer to influence and gain control of a board.

RELATED TERMS
  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Board Of Directors

    An appointed or elected body or committee that has overall responsibility ...
  3. Anti-Takeover Measure

    Measures taken on a continual or sporadic basis by a firm's management ...
  4. Inside Director

    A board member who is an employee, officer or stakeholder in ...
  5. Black Knight

    A company that makes a hostile takeover offer for a target company. ...
  6. Outside Director

    Any member of a company's board of directors who is not an employee ...
Related Articles
  1. The Challenging Role Of The Corporate ...
    Insurance

    The Challenging Role Of The Corporate ...

  2. Evaluating The Board Of Directors
    Insurance

    Evaluating The Board Of Directors

  3. The Basics Of Corporate Structure
    Investing Basics

    The Basics Of Corporate Structure

  4. Do ETFs have a board of directors?
    Investing

    Do ETFs have a board of directors?

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center