This paper examines the busy board and compensation for CEO and independent directors. The results show that firms with busy boards likely to increase the CEO and independent director’s compensation. The results also support the hypothesis when eliminating the endogeneity problem with econometric methods. Further, the results are also significant positive when changing the measurement of CEO and independent director’s compensation. This research suggests that the busy board is weaker the corporate governance.

Keywords: Busy Board, CEO, Independent Director, Excess Compensation, Corporate Governance