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by jldugger 914 days ago
How does the board of directors evaluate management performance then?
3 comments

I think it's fair to consider a board of directors as people who "work at the company".
I don’t. Further it’s common for all stockholders to be asked to vote on decisions with 1 vote per share. While it’s true most people have only a trivial number of shares and are therefore largely irrelevant they also don’t have access to non public information.
Most Boards of Directors contain a bunch of representatives of the largest institutional holders and some members hand picked by the CEO.

In Hasbro's case, the Chair of the Board is listed as an employee of the company and was their interim CEO. The rest of board follows what you would expect.

If history is any guide, "work" might be a stretch but "employed by the company", sure. Only half joking.
Have you ever read a news article about something you have insider knowledge of?
Simple. Did the management meet the various internal targets outlined by the board.. Those could be anything from profitability, to total cost structure, to anything really