DECLASSIFICATION OF CORPORATE DIRECTORS: ADDRESSING THE REAL CONCERNS AFFECTING STOCKHOLDERS

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Darlene M. Andert

DOI:10.22495/cocv3i4c1p1

Abstract

The future will provide the lesson about the effects of Board declassification. Yet, without question, declassification does degrade the synergy needed to build learning and decision-making symmetry, and it makes these part-time professionals, a temporary and potentially short-term member of a decision-making community. As a poison pill, this strategy remains questionable. Clearly, the alchemy of providing excellent oversight that generates great business outcomes is not the mandate of declassification. Declassification is a re-structuring strategy only. Real alchemy comes from a great deal of knowledge,, and sprinkle of luck, but remains unlinked to potentially changing the seats in the chairs after each election. Perhaps corporate governance restructuring should begin to address the real problem, which is positioning Directors to be knowledgeable, accountable, and ethical fiduciaries.

Keywords: Corporate Directors, Stockholders

How to cite this paper: Andert, D. M. (2006). Declassification of corporate directors: Addressing the real concerns affecting stockholders. Corporate Ownership & Control, 3(4-1), 160-163. http://doi.org/10.22495/cocv3i4c1p1