They argue that
outside directors “use their directorships to signal to internal and external
markets for decision agents that (1) they are decision experts . . .” (p. 315).
Directors also gain from prestige, networking, and learning opportunities
when they serve on other boards. Such nonpecuniary rewards are typically considered more important than direct financial incentives (Mace [1986],
Lorsch and MacIver [1989], Harford [2003]).8