The report of the NYSE Commission, issued this fall, summarized this particularreccommendation in the following way in its press release:
While independence is an important attribute for board members, the NYSE’s Listing Standards do not limit a board to just one non-independent director, and boards should seek an appropriate balance between independent and non-independent directors to ensure a proper mix of expertise, diversity and knowledge.
And in the text of the Commission's Report:
The Commission supports the NYSE’s listing requirements generally providing for a majority of independent directors, but also believes that companies can have additional non-independent directors so that there is an appropriate range and mix of expertise, diversity and knowledge on the board;
This thinking is very similar to the optimal situation (balance) between outsiders and insiders that Professor Saito in his paper (see recent entry)says may be a bit different for every company.