“Corporate Governance”
- Analyze the pros and cons of a corporation having outside board of directors. Next, determine the proportion (i.e., minority, majority, or equal representation) that the outside board members should represent in the board. Justify your response.
- Go to Bloomberg’s Website, and read the article titled, “CEO Pay 1,795-to-1 Multiple of Wages Skirts U.S. Law,” located in Week 10 of the course shell. You may view the original article at http://www.bloomberg.com/news/2013-04-30/ceo-pay-1-795-to-1-multiple-of-workers-skirts-law-as-sec-delays.html#disqus_thread. Considering the Board of Directors (BoD) as an intermediary between the managers and the owners, determine whether or not the BoD is acting ethically and legally in controlling CEO compensation. Next, suggest one (1) method for determining a reasonable compensation rate for the CEO of a company. Suggest two (2) changes that need to happen in corporate governance in order to control excessive CEO compensation.
