Board Characteristics
Board Leadership – The effectiveness of board meetings depends largely on the leadership ability of the chairperson to set an agenda and direct discussions. The board agenda is usually prepared by chairperson in collaboration with the CEO.
CEO Duality – implies that the company’s CEO holds both the position of chief executive and the chair of the board of directors. The are pros and cons of that model, but investors usually prefer to separate the positions. If they don’t, then it is preferable that the company’s board consists of a ‘substantial’ majority of independent directors.
Lead Director – demand for Lead Director increased because of the presence of CEO duality, resulting from growing concern that duality places too much power in the hands of CEO, which may impede board independence.