staggered (adjective, stag-gered, \ ˈstæɡərd \) board (noun, board, \ bɔːrd \)
Definition: is a company’s board of directors structure type in which a fraction of individuals holding the office as directors is elected annually, with each of them signing a multiyear contract. Additionally, a staggered board is separated into several classes that represent a specific percentage of the overall number of director positions. This board type can be useful in many situations as it allows substantially decreasing the risk of a corporate takeover due to the regularly changing nature of the board. Alternatively, such a structure can be called a classified board.
In a Sentence:
- To make sure that no one gathered significant influence over the top management of Layton’s Counseling, their owner instituted a staggered board structure.
- Since our company has a staggered board, I’ll only hold my post as a director for two years.
- Unlike other enterprises that use a staggered board, Open Floor has six director’s classes, with each of them serving for five years before being reelected.
Synonyms and related words: classified board, board of directors, admission board, board of trustees, board of advisors
