Is our Board allowed to run a competitive bid while under contract?

Almost always yes. Soliciting proposals is not a breach of a management agreement, and testing the market is ordinary fiduciary diligence. A significant share of Boards use a competitive round to renegotiate and stay.

Two practical cautions. Confirm nothing in your agreement restricts it — a right of first refusal clause occasionally does. And decide deliberately whether to tell your incumbent. Inviting them to bid is the cleanest way to find out whether you are priced correctly; running confidentially avoids a difficult year if you stay.