Of the following, which is the least necessary qualification for a member of a company’s Board of Directors?
A. Being in good standing with management
B. Having attentive and competent expertise
C. Regularly attending meetings
If I were taking the CFA exam, I’d answer A.
If you asked me on the street, I’d say “anything but A”.
It is not necessary for a Board member to enjoy talking with management , or vice versa. And while antagonism isn’t necessarily the goal, you don’t want the Board to become too close with management, or they may lose some independence.
^Great textbook answer. Bears little resemblance to real life.