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The Twenty-First Century Boardroom: Who Will Be in Charge?

Paul B. Firstenberg and Burton G. Malkiel
Reprint 3612; Fall 1994, Vol. 36, No. 1, pp. 27–35

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How can a board of directors be strengthened so that it can more effectively evaluate a company's performance, assess its management, and act to change the course of a corporation? The authors suggest eleven steps to reform a board's character and fortify its monitoring function. Among them are composing a completely independent board, with no company employees except for the CEO; establishing a lead director; aligning management's and directors' compensation with shareholders' interests; and strengthening the audit committee.

     
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