Interlocks in the Netherlands: Stability and careers in the period 1960–1980

The article is oriented towards the dynamics behind the network of interlocking directorates. In the interorganizational perspective the stability of different types of interlocks/lines between corporations is of strategic importance; in the intraclass perspective, the carriers of persons. The article therefore analyzes both. It shows that particularly primary interlocks (interlocks between the corporation in which the multiple director has an inside position and the other corporations in which he has outside positions) as well as multiple interlocks between corporations are considerably more stable than other interlocks. They are most likely being used for interorganizational purposes. Most of the interlocks however are generated by a very specific career pattern in which an executive position in a large corporation is almost a prerequisite to obtain many directorships.     

Evidence of a transnational capitalist class‐for‐itself: the determinants of PAC activity among foreign firms in the Global Fortune 500, 2000–2006

Transnational capitalist class (TCC) theory is rooted in the claim that the globalization of the economy has led to a globalization of economic interests and of class formation. However, systematic evidence linking the indicators of transnational class formation with political behaviour is largely missing. In this article, I combine data on board of director interlocks among the 500 largest business firms in the world between 2000 and 2006 with data on the political donations to US elections of foreign corporations via the corporate political action committees (PACs) of their subsidiaries, divisions or affiliates. Controlling for the various interests of individual firms, I find that foreign firms that are highly central in the transnational intercorporate network contribute more money to US elections than do the less central foreign firms. Given prior research on board of director interlocks, this finding suggests that a segment of the transnational business community has emerged as a class‐for‐itself.     

Interlocking directorates in canada: evidence from replacement patterns

Cross-sectional studies of interlocking directorates cannot adequately address the question of whether the network is primarily an accumulation of planned liaisons between specific pairs of firms or whether it reflects a more diffuse collective interest of the capitalist class. By examining the outcomes when ties are broken, it is possible to discover if ties between specific firms are usually replaced, as would occur if planned liaisons dominated the network. Replacement patterns are examined for interlocks among all firms ever among the one hundred largest Canadian firms between 1946 and 1977. About 30 percent of the broken ties are replaced by ties between the same pair of firms. Ties involving an executive of one of the firms (“insider ties”) are more likely to be replaced as are ties between firms with two or more interlocks. The findings suggest that interlocks serve both as vehicles of intercorporate control and liaison and as reflections of the class character of the group from which the directors of large firms are recruited.     

What Nonprofit Executives Want and What They Get from Board Members

In theory, nonprofit boards of directors exist to perform mission‐setting and oversight functions that help to ensure organizational accountability. Yet there is evidence that board behavior often falls short of this ideal. Using survey data from a sample of 241 executive directors of nonprofit agencies, we investigated whether nonprofit boards are meeting executive directors’ expectations, and if not, what factors explain this? We find that although board behavior tends to align closely with executive directors’ preferences for involvement in administration and management tasks, there is a greater disconnect between board behavior and executive directors’ preferences for involvement in mission‐setting and oversight duties. Factors that mitigate this gap include organizational professionalization and stability, whereas more extensive reliance on government funding exacerbates it. Female executive directors experience a greater disconnect in their preferences for board involvement and actual board involvement than male executive directors. We conclude by discussing the implications of our findings for both theory and practice.     

Corporate-governmental networks in the Netherlands

Corporate networks studies have been restricted mainly to the private or business sectors. Network analyses involving both corporations and state or government agencies have been extremely rare. In this paper, the intercorporate network of interlocking directorates in the Netherlands, based on 86 large corporations and financial institutions, is studied in terms of a bipartite corporate—governmental network which arises from the interlocking memberships linking these corporations with major committees, agencies and similar centers of decision in the public sector or central state mechanisms in the Netherlands. The corporations, representing 27 industrial sectors, have been related to government and state agencies in 28 policy sectors. In this exploratory analysis the two heavy industries, metal/shipbuilding and chemicals/oil stand out clearly. With respect to the 17 central firms the results demonstrate consistent correspondence between their central position in the Dutch corporate network and the degree of their interlocks with policy sectors in the state. The results also show that the interlocks are overwhelmingly linked with the two policy sectors “economic affairs” and “education and sciences”. Hence a more detailed analysis of the interlocks with these two policy sectors is reported.     

The duality of firms and directors in board interlock networks: A relational event modeling approach

The long tradition of scholarly work on corporate interlocks has left us with competing theoretical frameworks on the causes of interlock networks. Board interlocks are studied either as means to overcome the resource dependence of corporations or as a group cohesion mechanism of business elites. This contrast is due to an empirical divide of the literature where either the firms or the individuals are considered as decision-making bodies. In systematically ignoring the agency of the other group of actors, these literatures suffer from both theoretical and empirical biases in understanding the drivers of new interlocks. In this paper, we employ a relational event modeling technique that allows us to overcome this problem. The analysis of board appointments in Denmark demonstrates how in fact both personal and corporate considerations simultaneously drive the evolution of the corporate networks. The study of the duality of actors is essential for understanding the causes and consequences of corporate networks across time and space.     

Bringing the owners back in: An analysis of a 3-mode interlock network

This paper examines the association between ownership and director interlocks in Swedish big business during the period 1990–2005. By analyses of the 3-mode network of owners, firms, and directors, multiple director assignments are shown to be highly dependent on owner interlocks. The findings provide a new understanding of the mechanisms behind the formation of director interlocks. Furthermore, the association between the interlock types suggests that the ownership network may potentially (co-)produce some of the phenomena that have been attributed to the director network. Future analyses of director interlocks have to bring the owners back in.     

Cooperative power relations between nonprofit board chairs and executive directors

Nonprofit organizations face increasing pressure to change their governance practices. Some scholars propose a check‐and‐balance relationship between the board chair and the executive director. However, empirical evidence for this proposition remains lacking. Employing actor‐centered institutionalism, this comparative case study analyzes the preferences and capabilities of the board chair and the executive director given environmental and organizational pressure. The article compares the results of two main and two replicated cases that underwent significant processes of governance change, which led to a replacement of the board chair and the executive director. After the replacement we observe in all cases a similar pattern in the governance power relation: This power relation is characterized by the actors' equivalent capabilities and complementary preferences. The article concludes by introducing a cooperative power relation model that specifies the concept of checks and balances between the board chair and the executive director.     

Union presence and executive compensation: An exploratory study

While executive compensation has historically attracted considerable attention and controversy, this issue is becoming increasingly more contentious as organizations attempt to cut labor costs through reengineering and downsizing. Unions, governments, and workers are becoming critical of seemingly excessive executive compensation while employees are asked to make concessions. In fact, many labor organizations are specif-ically targeting executive compensation for criticisms: Witness their web sites tracking executive pay and numerous press releases and public statements. However, do unions, through their presence in a firm, affect executive compensation? While there is con-siderable research on the determinants and correlates of executive compensation, the literature is silent on the role of unions. We investigate the distinctive effects of union presence with data on a sample of Canadianbased metalmining firms. The differences between union and nonunion firms, as well as the unique effects of union presence, are analyzed and future research suggested.     

Private lives,public accountability: A case study

Lend a Hand Children's Services is the most prominent provider of family services in rural south central Ohio. The agency is in the process of enlarging its fundraising goals and becoming even bigger in the community. Staff have brought to the attention of the vice president of the board that the board president and the executive director may be involved intimately as a couple. Inasmuch as the board president must evaluate the executive director, the vice president turns to trusted counsel for advice on how to approach the unique problems raised by the situation.     

Resignation or Dismissal?: When a CEO and a President Clash

In the executive director's opinion, Bluehills Family Services' board of directors had serious problems with their organizational governance. These difficulties came to a head in an apparently unresolvable clash between the executive director and the board president. Given the preexisting board and organization perceptions, could an emergency board meeting produce a positive outcome, and would the executive director's participation be counterproductive?     

Leadership in faith‐based nonprofits

This case study illustrates the unique challenges of leading a faith‐based nonprofit organization within a multifaith constituency in Asia. The core themes of the case are based on research conducted with the staff, executive team, and board members of an international faith‐based nonprofit organization in Asia. Specifically, the case focuses on three identity‐based leadership dilemmas in relation to (1) creating a shared sense of organizational identity, (2) talent management, and (3) board governance. By describing the challenges faced by the CEO, the case shows how a strong faith‐based identification can positively bind an organization together, but also result in organizational blind spots with unintended consequences.     

What you don't know can hurt your community: Lessons from a local United Way

This paper describes how a controversial executive compensation package approved by a local United Way agency eclipsed the agency's long‐standing record and reputation of being a top fundraiser and pillar of the community. Using the framework developed by P. Connelly and York (2003), this case study illustrates how the lack of leadership and adaptive capacity within the board of directors, coupled with questions and speculation about managerial capacity, contributed to a highly visible scandal that resulted in the loss of the agency's chief executive officer, the resignation of the chairman of the board of directors, an internal investigation, and ultimately, a federal investigation. Not only did these events hurt the agency, which was forced to eliminate programs and cut staff, but these events hurt the annual campaign, which declined by more than 30 percent, resulting in substantial cuts in funding to dozens of nonprofit organizations. The findings from this study illustrate the importance of building strong governing boards that focus on both organizational processes and performance outcomes. They also highlight how important it is for the flagship charitable institutions to model best practices and invest in their own capacity.     

Principals and Agents: An Investigation of Executive Compensation in Human Service Nonprofits

This study proposes a revised agency theory for the nonprofit sector, distinguishes between the extent of agency and the extent of monitoring, and compares the magnitudes of the two impacts. Using panel data for 1998–2003, the paper tests whether monitoring by principal-stakeholders such as donors, clients, the government, and the board reduces the opportunity for executive misconduct such as extravagant spending on compensation and perquisites. Given the theory, the findings show that two effects influence CEO salaries. First, while nonprofit endowments provide a fiscal cushion in tough financial situations, by offering “organizational slack” they also increase the CEO’s opportunity to steal or raise her compensation (i.e., agency effect). Second, donors utilize monitoring mechanisms such as auditing or direct observations, which limit the opportunity for misconduct and reduce executive pay (i.e., monitoring effect). In the final analysis, the monitoring effect is greater than the agency effect, which implies that even if agency problems are present, the monitoring that donors provide offsets them.     

The relationship between formal planning and performance in nonprofit organizations

A study of 240 YMCA organizations revealed that regardless of organization size, those organizations that used a formal approach to strategic planning had higher levels of financial and social performance than those with less formal processes. The better performers also assigned the responsibility for planning to a strategic planning subcommittee of the board rather than to the board's executive committee or to an outside consultant.     

Analysing interlocking directorates: Theory and methods

In this review article an overview is given of research on interlocking directorates. The emphasis is on methodological problems and innovations. The start of research on interlocking directorates in Germany and the U.S.A. at the beginning of this century is described. Studies on financial groups are then discussed, followed by the sociological approach and longitudinal studies. Finally, more recent research is discussed, starting with a short introduction to the research on networks of interlocking directorates. In the last section five topics are discussed in more detail: component analysis, groups in the network, different types of interlocking directorates, the stability of interlocking directorates and the relation between different corporate interlocks.     

Commitment and performance of nonprofit board members

Boards of nonprofit organizations are entrusted to oversee and ensure that the organization remains true to its mission, functions within the confines of state and federal laws, and operates in a financially responsible manner. This critically important oversight is carried out by volunteers. This study examined the relationships between board member commitment and individual performance. Commitment was assessed using Meyer and Allen's Three‐Component Model of Commitment: Affective, Continuance, and Normative (1991). The population in this study was volunteer board members of midsized, social service nonprofit organizations in the Orange County, California, area. The strongest findings were between affective commitment and performance in board roles. Committed board members reported more involvement and are perceived by the executive to be more engaged and valuable. Analysis revealed that executive judgments of participation are based on both board member behavior and Affective commitment expressed by the board member.     

Lessons for successful nonprofit governance

Boards of nonprofit organizations malfunction as often as they function effectively. As the best-managed nonprofit organizations demonstrate, both the board and the executive are essential to the proper functioning of a nonprofit organization. These administrative organs must work as equal members of a team rather than one subordinate to the other. Moreover, the work of the executive and the board does not divide neatly into policy-making versus execution of policy. Boards and executives must be involved in both functions and must coordinate their work accordingly. In a well-functioning nonprofit organization, the executive will take responsibility for assuring that the governance function is properly organized and maintained.     

Transnationalists and national networkers in the global corporate elite

Through a longitudinal network analysis of the interlocking directors of the world's 500 largest corporations (1996–2006), in this article I map continuities and changes in the social organization of the global corporate elite. I pursue two questions: (1) Can we trace the formation, within the elite, of a set of directors whose transnational interlocks form an inner circle of cosmopolitans? And (2) How does the regionalized character of global capitalism structure the global corporate elite in its national and transnational segments? Findings show that transnationalists have gained prominence within the global corporate elite and are firmly embedded in the network, through extensive ties to each other and to various national components. National networkers, despite thinning ranks and sparser interlocks, continue to form the backbone of the global corporate elite, and remain on balance nationally cohesive. Overall, despite modest accretions in participation from the semi‐periphery, and with the decline of the Japanese corporate network, the elite becomes centred even more strongly on the North Atlantic. With its growing regional cohesiveness, corporate Europe gains prominence within that heartland. This analysis helps specify the process of transnational capitalist class formation at its higher reaches.