Board of Directors: Selection, Compensation, and Removal

Board of Directors: Selection, Compensation, and Removal

By
David F. Larcker, Brian Tayan
CGRI Quick Guide Series.
2015

A board of directors requires professionals with a diverse mix of managerial, functional, and other specialized knowledge in order to properly advise and oversee management. This Quick Guide reviews the process by which companies select, compensate, and evaluate board members. It answers such questions as:

  • How are qualified directors identified?
  • What skills and experiences are needed?
  • How are directors paid?
  • How are directors evaluated?
  • How are “bad” directors removed?