13.5 Is the attention paid to independence overrated?

Based on the answers to the research questions, the answer to the main research question – whether the attention paid to board and director independence is overrated, based on the economic theory, a legal comparison between the United Kingdom, the Netherlands and Sweden, and behavioural science – can be given. The answer is negative, but there are certain conditions that must be fulfilled.

The answer depends on the definition of independence that is used. When independence is considered to be independence in fact, then the attention paid to it cannot be overrated. It is very important for a supervisor to have that independent mindset when he is executing his tasks, which results in unbiased work. Besides being independent in fact, he must be independent in appearance. In corporate governance and in supervision in particular, trust is a key element. This trust is increased if the supervisor is independent in appearance, which means that there are no facts and circumstances that are so significant that a reasonable and informed third party would question the supervisor’s independence. These independent supervisors must work in an environment with a composition, structure and preconditions that fully facilitate their independence. Therefore, if the three building blocks of independence are well constructed, the attention paid to board and director independence cannot be overrated. Although direct financial performance seems to be negatively influenced by independence, this study has proved that independence on the (supervisory) board undoubtedly has benefits.