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Chapter 5. Caffeine Badly Needed: Sleepy... > Red Flag 9: A Compensation Committee...

Red Flag 9: A Compensation Committee in the CEO’s Pocket Lacks Independence

All the requirements for “independent” directors in the world won’t make any difference if they are so smitten by their CEO that skepticism goes out the window. Investors should be on their guard if they read comments from the board or one of its committees that deify the CEO. It puts that CEO in a position to milk such sentiment for all it’s worth.


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