Do co-opted boards protect CEOs from ESG controversies?

We explore the relationship between board co-option and ESG controversies using an extensive sample of U.S. firms from 2002 to 2018. Contrary to previous studies highlighting the potential negative impacts of co-opted boards on organizational outcomes, our research reveals the beneficial role of co-opted directors. In particular, firms with a higher proportion of co-opted directors have CEOs who experience fewer ESG controversies. These findings offer important implications for stakeholders, shifting the narrative on board co-option.