Board Refreshment: Like a Breath of Fresh Air. By: Dah, Bilal Al; Dah, Mustafa A. and Frye, Melissa B. 2024. British Journal of Management. Vol. 35 Issue 1, p378-401.

Using a sample of firms listed on the S&P1500 index for the period 20062021, we develop a comprehensive board refreshment index to examine why firms refresh as well as to consider the effects of such changes on the monitoring efforts of the board. We measure refreshment as a withinboard measure of the changes in diversity based on gender, nationality, age, interlocks, classification, education level and financial expertise. We find that longertenured boards with older directors are more likely to refresh. Bettergoverned firms and more diverse boards are also more likely to seek refreshment. We find a positive relation between board refreshment and CEO turnoverperformance sensitivity, payforperformance sensitivity and payforrisk sensitivity. Thus, our findings suggest that board refreshment promotes more effective board monitoring as well as efficient managerial contracting. Analysing board refreshment addresses an important shortcoming in the board diversity literature by directly studying the dynamics of boards.