New research seems to highlight the fact that financial companies with independent boards and directors tend to undermine corporate governance and stock performance even though independence has been seen as the fix for these issues. This happens at the same time of pushing for procedures in the name of the goals.
This always reminds me that the best example of independence is a homeless person. Having no stake in the outcome, an independent board can have their own metrics to follow even when convinced that their goals and the company's objectives are the same. The same fact of their independence makes them unregulated about the results. Independence by itself gives you exactly that, independent results.
In worse cases, independent directors are the magic bullet as independent reporting tools. But relying on a person specifically for his/her decision making is increasing the risk. Corporate governance is a process to be tuned up along the way not directed.
In Spanish we have a saying: The watchful eye of the owner feeds the horse. The agency problem is not fixed by an independent body with no stake that replaces the owner's responsability. It is fixed by a body that is responsible for independently overseeing the already in place corporate governance.
