Building a Better Board Book

Building a Better Board Book

By
Alex Baum, David F. Larcker, Brian Tayan, Jacob Welch
Stanford Closer Look Series. October
2017

Board members rely on information provided by management to inform their decisions. Unfortunately, some research calls into question the adequacy of the information the board members receive and, by extension, the quality of decisions they are able to make. Based on observations by ValueAct Capital, this Closer Look examines shortcomings that plague corporate board books and provides recommendations for remedying them.

We ask:

  • In general, what is the quality of information that public company directors receive?
  • What can board members do to improve information quality and presentation?
  • What are the institutional impediments standing in the way of improving board books?