Corporate Governance from the Bottom Up

Non-executive directors are often seen as a way to avoid corporate ‘buccaneering’ and tame reckless CEOs. Their exact contribution to companies, however, remains unclear. Independent executives, on the other hand, have been shown to be accurate ‘predictors’ of profitability, performance and value creation. Internal monitoring by the CEO's immediate subordinates should be the new area of focus in the corporate governance debate.