What The Best Boards Do
-- Evaluate performance of CEO annually in meetings of independent directors
-- Link the CEO's pay to specific performance goals
-- Have a governance committee that regularly assesses the performance of the board and individual directors
-- Pay retainer fees to directors in company stock
-- Have no more than two or three inside directors
-- Ensure that the audit, compensation, and nominating committees are composed entirely of independent directors
-- Ban directors who directly or indirectly draw consulting, legal, or other fees from the company
-- Ban interlocking directorships: ''I'm on your board, you're on mine''
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.