Outside directors are supposed to be elected yet many are handpicked by the CEO, creating the directors' lack of
A) interest in company matters.
B) corporate social responsibility.
C) focus on profits.
D) independence from the CEO.
E) a written ethical code.

Question

Quizplus · Accepted Answer

The biggest complaint concerns the independence of the directors. Inside directors may be members of the firm, but outside directors are supposed to be elected from outside the firm. However, in some companies, the outside directors have been handpicked by the CEO, making oversight difficult.

Outside Directors Are Supposed to Be Elected Yet Many Are