Board of Directors: Structure and Consequences

Board of Directors: Structure and Consequences

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

The board of directors is generally described in terms of its prominent structural attributes, including size, composition, and independence. This Quick Guide examines the importance of these, and whether they contribute to board effectiveness and shareholder value. It answers the questions:

  • What is the composition of a typical board?
  • Which factors improve governance quality?
  • Which factors do not?
  • Can a board’s quality be determined by its structure?