Staggered Board

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.

BREAKING DOWN '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.

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