Corporate Governance practices are flawed in our view as it relates to independent Board members.
Corporate Boards are littered with outsiders who know little about the industry or the company for which they serve on the Board. My view has always been that smart investors bet on Management Teams. I would prefer a Board that consists of Management Team members where strategy, execution and compensation are aligned over a Board comprised of independent outsiders that lack industry experience and expertise. The latter offers little in the way of operational or strategic value. The argument against insiders is that they will fall in line with the CEO and will not provide checks and balances. Good. I want a Board that is aligned with the CEO, that has careers and compensation at stake, and that is qualified in terms of the feedback it provides. If as an investor I do not like a company’s strategic path or operational execution, I can vote with my shares.