Why Not Sack A Few Directors?
Say CIAO to corporate directors who don't meet the new standards for institutional holders and activists. In the parlance of Institutional Shareholder Services (ISS), CIAO not only means goodbye, but goodbye to directors who fail to meet the test of commitment, independence, attendance, and ownership. The ISS is urging its clients to vote against individual directors who don't show up for 25% of meetings. Other activists are urging fund managers to vote against directors who have potential conflicts of interest, who sit on too many boards, or who don't own much stock in the company they are supposedly governing. It's a good idea that deserves the support of CEOs and shareholders everywhere.
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