All of the following are principles of good organizational governance, as established by Business Week, except:
A) No directors do business with the company or accept consulting or legal fees from the firm.
B) The audit, compensation and nominating committees are made up solely of outside directors.
C) Each director owns a large equity stake in the company, excluding stock options.
D) At least two directors are current or former company executives.
E) The CEO is not also the Chairperson of the Board

Question

Quizplus · Accepted Answer

The other principles listed (A, B, C, and E) are all established principles of good organizational governance as recognized by Business Week. However, having at least two directors who are current or former company executives may not be seen as ideal, as it could present a conflict of interest or limit the diversity of perspectives on the board.

All of the Following Are Principles of Good Organizational Governance