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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 828 |
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Before the 1980s, most boards were composed largely of directors who were currently employed by the company of had just retired from the company. Critics proclaimed that directors who "were selected by, reported to, and received paychecks from the CEO could hardly be the most objective management monitors...
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Many outside directors work for companies that do business with the firm on whose board the serve on. In other situations, outside directors serve as lawyers, consultants, or lenders to the board's firm. However, other proposals to increase director independence have called for greater stock ownership of directors, to make their interests more in line with that of the shareholders...
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