One means that is considered to improve the effectiveness of outside directors is:
A) mandating that all outside directors be drawn from government or academia rather than industry.
B) requiring that outside directors be former executives of the firm.
C) requiring outside directors to own significant equity stakes in the firm.
D) requiring that outside directors act objectively and have no ownership interest in the firm.

Question

Quizplus · Accepted Answer

Requiring outside directors to own significant equity stakes in the firm aligns their interests with those of shareholders, potentially improving their effectiveness in overseeing management.

One Means That Is Considered to Improve the Effectiveness of Outside