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Originally Posted by deanrichard
I spent much of my life working for corporations. In theory, everything you said is true. But in many (most?) cases the board and the CEO are all buddies. They golf together, they go to lunch, they go to parties, they see each other a lot. At least, that's my experience.
In my experience, it's a far cry from impartial. I worked for a corporation whose CEO was ranked in the Top 10 worst CEO's in several publications, yet he always managed to get a raise.
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All companies over a certain size seem to have members of the board to be an exclusive club. And many are members in multiple boards of directors.
It's been a lot in media the last 20 years or so - that any CEO getting fired get a golden parachute that is something like 10-20 lifetime achievements of an ordinary worker - for doing a crap job, sometimes only for a couple of months.
Probably directors of the boards vote this through hoping they are elected as CEO in any company, all playing golf together, and next to go with silly money compensation. They are all yes-men due to this. Seems unstopable even with all this media attention.
Annual shareholders meetings are electing chairman of the board, which in turn select members of the board, that in turn elect CEO. This might differ a bit depending on legislation in different countries.
But to change this shareholders meetings is the place to do it. But shareholders are too often big trust funds which have board of directors that golf together with CEO's.
Board of untouchables....