Intel’s Andrew Grove made some really smart comments at a conference in California. He basically rips on the structure and habits of today’s Corporate boards in America. “Grove reserved special scorn for senior managers who take millions of shares of stock as incentives to motivate themselves to work on behalf of shareholders.”
Here’s another good quote from the article, “Grove castigated a system in which boards of directors too often function as mere rubber stamps for a company’s chief executive officer. ‘Boards in public corporations can practically be described as advisory bodies, selected by the CEO, working for the CEO,’ he said.”
Here’s one last quote (I promise), “In particular, Grove criticized arrangements in which a single person holds the title of chairman and CEO, as he said occurs in 85 percent of Fortune 500 companies. He was pessimistic about the likelihood of any significant near-term changes, floating an interim proposal that directors be required to attend quarterly meetings. ‘I think half the grades of board directors should be based on their participation,’ he said, suggesting this would help keep management in line.”
