Which of the following is NOT a concern specific to the effectiveness of the board of directors? a. The election mechanisms in place such as the use of a classified board or the use of a non-cumulative voting system. b. The number of insiders and outsiders on the board of directors. c. Board members’ compensation. d. The number of outside blockholders. e. Whether the firm has a “dual CEO”.
The election mechanism in place such as the use of classified board or the use of non cumulative voting system will not decide the effectiveness of the board of director as it is required in order to select the board of directors through various mechanism of voting.
The number of outside block holders or whether the firm has dual CEO or the number of outsider and insider will have a significant effect on the overall effectiveness of board of directors.remuneration to the board members is also highly critical in order to decide the effectiveness of the board of directors.
Hence the correct answer would be option (a).
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