This paper has explored the impact of appointing executive directors as non- executive directors on the appointing firm‟s performance. We find that relatively few executive directors are appointed as non-executive directors in UK quoted firms, which is consistent with the Higgs Report (2003). This is despite the long-standing conjecture that such appointments may positively affect firm performance. Consistent with this view, our results suggest a positive link between the presence of an IED and the appointing firm‟s performance. Our data reveal that the better the relative performance of the firm where the director is an.
