Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

staggered board

A staggered board is a governance practice in which only a fraction (typically a third) of the members of the board of directors is elected each year, rather than all at once.

Practically, staggered boards have the effect of making hostile takeovers more difficult and are hence considered an anti-takeover practice, similar to a poison pill. In the presence of a staggered board, a hostile bidder must wait several years to entirely replace the board with one of its own choosing, particularly...