| BUSINESSWEEK ONLINE : DECEMBER 20, 1999 ISSUE | ||||||||
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| MANAGEMENT
Valley-Style Boards The rapid transition from startup to sizzling IPO has created a new type of public-company board at many tech companies and dot.coms. Is it good or bad for corporate governance? PROPONENTS SAY... -- The smaller boards typical of high tech get more done, faster -- Higher levels of ownership among board members align them more closely with shareholders -- Board members, who are often venture capitalists or have business dealings with the company or its potential customers, are more deeply involved with strategy DETRACTORS SAY... -- Such boards aren't independent enough. The many business and social ties between directors and management create conflicts of interest that could affect decision-making -- Drawing directors from such a small, tight-knit business community means boards are lacking in diverse viewpoints or relevant experience in other industries -- High levels of stock ownership are no substitute for good governance and don't guarantee strong oversight _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Dot.Com Boards Are Flouting the Rules TABLE: Valley-Style Boards TABLE: Too Close for Comfort? INTERACT E-Mail to Business Week Online | |||
