Board Characteristics
Resources – board of directors should have adequate resources to effectively fulfill its oversight functions. Resources available to the board consist of legal, financial, and information resources.
Board Independence – implies that, to be independent director shouldn’t have any relationship with the company other than his or her directorship that my compromise the director’s objectivity and loyalty to the companies shareholders.
Director compensation – best practices suggest that increases in stock ownership, reduction in cash payments, and charges in compensation should be aligned with shareholders long-term interest determined by board, approved by shareholders, and fully disclosed in public reporting.