In today’s briefing:
- It’s Not Who The Directors Come From, but Their Skills and Ability to Fulfill Their Fiduciary Duties
It’s Not Who The Directors Come From, but Their Skills and Ability to Fulfill Their Fiduciary Duties
- People who can make business strategy decisions that are economic sense should be hired to serve on the board, not necessarily investors or financial experts.
- If the motivation to increase corporate value is weak, linking the compensation of directors to the expansion of corporate value or granting them the company’s stock is an alternative.
- Investors aren’t necessarily the only ones with conflicts of interest with shareholders. Founders hold significant shares, and the same problem can be assumed for directors from financial institutions with cross-shareholdings.
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