Today, while boards are under more scrutiny for risky decisions and questionable behavior, innovative approaches to governance are creating an entirely new set of best practices. Here, we share research, insights, and recommendations for building more effective boards.

1. BUILDING A BETTER BOARDROOM
FIVE EXAMPLES OF HOW TRANSPARENCY, DATA, AND
CULTURE ARE CREATING NEW MODELS IN GOVERNANCE

2. “CULTURE IS EMBEDDED THROUGHOUT AN
ORGANIZATION, SO IT’S NOT JUST ABOUT
REPLACING A PERSON OR TWO. YOU’VE
GOT TO SHOW YOU’RE VERY SERIOUS
BY BRINGING IN EXPERTS TO ASSESS
THE SITUATION, AND YOU’VE GOT TO PUT
CONCRETE PROCESSES IN PLACE.”
DAVID F. LARCKER, JAMES IRVIN MILLER PROFESSOR OF ACCOUNTING
STANFORD GRADUATE SCHOOL OF BUSINESS
STANFORD GRADUATE SCHOOL OF BUSINESS | GSB.STANFORD.EDU/CGRI

3. Today, while boards are under more scrutiny
for risky decisions and questionable behavior,
innovative approaches to governance are
creating an entirely new set of best practices.
Here, we share research, insights, and
recommendations for building more
effective boards.
STANFORD GRADUATE SCHOOL OF BUSINESS | GSB.STANFORD.EDU/CGRI

4. Netflix has devised a unique approach that significantly
narrows the information gap between the board and
management. Armed with deeper insights, data, more
transparency, and better information flow, Netflix board
members are able to make bold strategic decisions and
reverse mistakes faster.
1. NETFLIX’S APPROACH TO GOVERNANCE:
GENUINE TRANSPARENCY WITH THE BOARD
Read More
STANFORD GRADUATE SCHOOL OF BUSINESS | GSB.STANFORD.EDU/CGRI

5. Directors rely on board books to inform decisions;
however, research questions the adequacy of the
information they receive and, by extension, the decisions
they make. We examine shortcomings that plague
corporate board books and provide recommendations
for remedying them.
2. BUILDING A BETTER BOARD BOOK
DOPUBLICCOMPANYBOARDBOOKSPROVIDE
THE BEST INFORMATION POSSIBLE TO
DIRECTORS
Read More
STANFORD GRADUATE SCHOOL OF BUSINESS | GSB.STANFORD.EDU/CGRI

6. HOW DOES BOARDROOM CULTURE INFLUENCE
DECISION MAKING?
Publicly traded company boards conduct annual self-evaluations
to determine whether they are functioning effectively. While many
directors are satisfied with the job that they and their fellow board
members do, boardroom performance often falls short along
several important dimensions. We review the current state of board
evaluations and summarize how they can improve.
3. BOARD EVALUATIONS AND BOARDROOM
DYNAMICS
Read More
STANFORD GRADUATE SCHOOL OF BUSINESS | GSB.STANFORD.EDU/CGRI

7. Together with the Rock Center for Corporate Governance
at Stanford, we surveyed nearly 200 board directors of
U.S. public and private companies. We found that while
boards generally rate themselves positively in terms
of skills and expertise, significantly high negatives are a
cause for concern for a large number of firms.
4. SURVEY RESULTS:
BOARD OF DIRECTOR EVALUATION AND
EFFECTIVENESS
Read More
STANFORD GRADUATE SCHOOL OF BUSINESS | GSB.STANFORD.EDU/CGRI

8. Governance experts have vigorously debated CEO compensation for
years, yet little effort has been made to understand the labor market
for CEO talent—a key determinant of pay. Insights from directors of
the largest 250 companies in the U.S. suggests that the labor market
for top CEO talent is tighter and more competitive than many
governance experts realize.
5. CEO TALENT:
A DIME A DOZEN, OR WORTH ITS WEIGHT IN GOLD?
Read More
STANFORD GRADUATE SCHOOL OF BUSINESS | GSB.STANFORD.EDU/CGRI

9. LEARN MORE
Led by Professor David F. Larcker, the Corporate Governance Research Initiative
at Stanford GSB provides research and insights on a broad range of issues facing
corporations and boards of directors that includes executive compensation,
board governance, CEO succession, and proxy voting.
SEE ALL RESEARCH: gsb.stanford.edu/cgri
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