Evidence exists that directors
A) aggressively represent the interests of shareholders.
B) are quick to replace or reduce the compensation of underperforming CEOs.
C) often represent the interests of the managers who nominated them for directorships.
D) are vigilant in requiring that the firm's assets be used efficiently.

Question

Quizplus · Accepted Answer

Research has found that directors may prioritize the interests of the managers who nominated them over the interests of shareholders. This is known as "captured boards" where directors may be less likely to challenge the CEO's decisions or push for changes that could benefit shareholders at the expense of management.

Evidence Exists That Directors