Strong corporate governance relies on a strong board of directors. Which of the following would be a strong candidate to be a board director for XYZ, Inc.?
A) Community member who has already served on the board 15 years.
B) Investor who has a multi-million dollar joint venture with the CEO and CFO.
C) Retired controller of a Fortune 1000 company.
D) Community member who receives annual large consulting contracts from XYZ.

Question

Quizplus · Accepted Answer

The retired controller of a Fortune 1000 company would have relevant experience and expertise to contribute to the board's decision-making process. Option A is not a strong choice as it could result in the lack of new perspectives and fresh ideas. Option B could create a conflict of interest, as the investor might prioritize their joint venture over the company's interests. Option D could also generate a conflict of interest, as the community member might prioritize their consulting contracts over the company's interests.

Strong Corporate Governance Relies on a Strong Board of Directors