One means that is considered to improve the effectiveness of outside directors is

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Requiring outside directors to own significant equity stakes in the firm aligns their interests with those of the shareholders and can motivate them to act in the best interest of the firm. This also reduces the likelihood of them being influenced by other interests or agendas. Option A is not a good choice as it limits the pool of potential candidates and may not necessarily result in better board performance. Option B may result in conflicts of interest, as former executives may retain close ties with the firm and prioritize their interests above those of other stakeholders. Option D may not be practical, as outside directors with no ownership interest may not have sufficient motivation to perform their duties effectively.

One Means That Is Considered to Improve the Effectiveness of Outside