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Banks are special financial institutions generating distinct corporate governance challenges. The present paper examines the relationship between two of the most pertinent corporate governance factorsthat is, the size of the Board of Directors and the proportion of non-executive directorsand firm performance on a sample of 58 large European banks over the period 20022004. The empirical analysis embraces a number of bank-specific variables. Our results reveal that bank profitability is negatively related to the size of the Board of Directors, while the impact of Board composition, although positive in all models, is, in most cases, insignificant. The results are robust after controlling for firm-specific variables.
