Increasing the number of insiders on the board can increase the board's effectiveness.

Question

Quizplus · Accepted Answer

Including insiders on the board can provide valuable insights and perspectives on the company's operations and culture. They are familiar with the company's internal workings and can help bridge the gap between the board and management. This can ultimately lead to more effective decision-making and better governance. However, there should still be a balance between insiders and independent directors to ensure adequate oversight and impartiality.

Increasing the Number of Insiders on the Board Can Increase