Board Entrenchment Becomes a Shareholder Narrative

ERA VIII — Cycles of Governance Friction
Shareholder Impact
2005

Perceptions of board entrenchment gained traction among shareholders.

What Happened

Repeated proxy outcomes and limited governance change led some shareholders to conclude that boards were insulated from meaningful accountability, regardless of election results.

Why It Matters Today

Whether accurate or not, entrenchment narratives thrive where outcomes rarely change.

Related Patterns

Pattern 2: Authority Concentration
Pattern 8: Procedural Legitimacy vs. Trust

Related Governance Themes

‍ Independent Review and Recusal Standards
Clearly Defined Fiduciary Roles and Duties

Sources

Primary Source
Secondary Source Link