NYSE’s Commission on CG: Put Enough Managers on the Board

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.

http://www.nyse.com/pdfs/Press_Release-NYSE_Commission_on_Governance_09-23-10.pdf

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;

http://www.nyse.com/pdfs/FINAL_CCG_Report_09-23-10.pdf

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.

The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

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