Celebrity board director

A celebrity board director is an officer with significant influence in the company's governance decision-making process and who possesses one or more celebrity traits including credibility, goodwill, rights, image, influence, liability, and standard of value. A director's leadership and decision-making affects the governance and wealth maximization of shareholders’ wealth.
A question remains whether the perception of a celebrity board director is a universal phenomenon or specific to boards within the United States. A definition for celebrity is a famous person or a person who is widely known in society and business who commands a degree of public and media attention. The phenomenon of celebrity that indicates celebrity requires not only fame but also fame with an evident monetary value.
In the case of a celebrity board director and corporate governance practice, the shareholders’ wealth potential is at stake. Effective corporate governance requires leadership in addition to influence. Many U.S. companies have long stocked the company’s board with a number of influential directors (see Table 1). A company’s leadership expects the celebrity component of a celebrity director to bring perceived value, press, and investor interest.
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