Outside directors face minimal personal liability risk in cross-border analysis.
Outside directors of public companies, including those in the USA, face a low risk of personal liability. Research across different countries shows that while laws and lawsuit outcomes vary, directors rarely have to pay damages or legal fees out of their own pockets. Instead, the company or insurance covers these costs. Despite differences in legal systems, there is a functional convergence in outcomes for outside directors. This suggests that fears of liability for directors are largely unfounded.