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Independent doesn't mean they don't have skin in the game. It just means they have no other job in the company apart from their directorship. The CEO, COO and CFO who are also on the board are not independent director.What's wrong if all directors are inside directors and the CEO is the Chair? Well no one will be able to dismiss the CEO for starters even if he did something stupid...Management with total control of a company's direction also may not be a good thing. An outsider's independent viewpoint can be very valuable...There are pros and cons to each so a balance is probably the way to go.
Independent doesn't mean they don't have skin in the game. It just means they have no other job in the company apart from their directorship. The CEO, COO and CFO who are also on the board are not independent director.
What's wrong if all directors are inside directors and the CEO is the Chair? Well no one will be able to dismiss the CEO for starters even if he did something stupid...
Management with total control of a company's direction also may not be a good thing. An outsider's independent viewpoint can be very valuable...
There are pros and cons to each so a balance is probably the way to go.
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