What Didn’t Work: Tongue-Tied at the Top

Boards hire the best leaders they can find and, having done so, are inclined to trust and support them. In most cases, this works out. But strong, active, independent oversight is needed to assure that leaders do not go astray. This includes the type of good governance that has become so common in post-Enron corporate boards: full board discussions of important issues, including leadership compensation; regular executive sessions with only the outside directors, external auditors, and legal counsel present; open lines of communication between officers such as the CFO and chief legal counsel; and a culture open to whistle-blowers.