Simon Leagreet,the Chairperson and CEO of L-EVA Industries,Inc.,has long been the major power at L-EVA.
A majority of the directors are concerned that while Mr. Leagreet has been responsible for the firm's earning above-average returns,he has been displaying a tendency toward personal extravagance at the firm's expense. In order to limit Mr. Leagreet's power,the board of directors plans to

Question

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By appointing another individual as the chairperson of the board of directors, the power of Mr. Leagreet can be limited effectively. This will ensure that any personal extravagance at the firm's expense is controlled, and the overall interests of the company are prioritized. Electing an insider as the lead director may not be effective as they may still be swayed by Mr. Leagreet's influence. Requiring Mr. Leagreet to personally certify the firm's financial reports and reducing his stock options package may not address the issue of personal extravagance.