• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 5. Caffeine Badly Needed: Sleepy... > Red Flag 3: When “Independent Board”...

Red Flag 3: When “Independent Board” Means the CEO’s Grocer Is a Director

The authorities can only go so far in defining independence, and it really is up to investors, analysts, and the media to point to abuses of the spirit of the recent reforms as much as breaches of the letter of the law. For example, it may be possible for CEOs to get their golf club buddies onto the board and yet still call them independent directors because the company has no “material” business relationship with them. Mind you, getting such board memberships with potentially large fees may seem material to some.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint