What recommendations would you make to improve the effectiveness of today's boards of directors?

Question

Quizplus · Accepted Answer

The Answer is The following are among the many suggestions often made:
-Add more outsiders (people not affiliated with the corporation) to the board of directors. Keep the percentage of insiders (typically top management) to less than 50% of board membership.
-Separate the positions of CEO and Chairman so that top management cannot unduly influence the board's meetings and agenda. This should improve the board's ability to properly evaluate top management. If the Chair can't be separated from the CEO, select a Lead Director from among the outside directors.
-Use a committee composed of outsiders to nominate potential new directors. This will help to ensure that potential members are not friends of top management who may owe more allegiance to the CEO than to the shareholders.
-Nominate people to the board who have knowledge valuable to the board and who have expertise of value to top management. These should be people who will have the respect of top management and who can both advise and criticize top management as needed. Make sure that they are diverse in terms of background and experience.
-Require board members to own substantial amounts of stock in the corporation to ensure that they have a personal as well as professional stake in the welfare of the corporation.
-Allow shareholders to nominate people for election to director.

What Recommendations Would You Make to Improve the Effectiveness of Today's