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Building a Better Board Book

10 Pages Posted: 5 Oct 2017  

Alex Baum

Value Act Capital

David F. Larcker

Stanford University - Graduate School of Business

Brian Tayan

Stanford University - Graduate School of Business

Jacob Welch

Value Act Capital

Date Written: October 9, 2017

Abstract

Board members rely on information provided by management to inform their decisions. Unfortunately, some research calls into question the adequacy of the information the board members receive and, by extension, the quality of decisions they are able to make. Based on observations by ValueAct Capital, this Closer Look examines shortcomings that plague corporate board books and provides recommendations for remedying them.

We ask:

• In general, what is the quality of information that public company directors receive?
• What can board members do to improve information quality and presentation?
• What are the institutional impediments standing the way improving board books?

Keywords: Board Presentations, Board Books, Strategic Decisions, Strategy, Investment Decisions, Cost Accounting, Managerial Accounting, Allocation of Expenses, Board of Directors, CEO Compensation, Corporate Governance Research

JEL Classification: G3, G30

Suggested Citation

Baum, Alex and Larcker, David F. and Tayan, Brian and Welch, Jacob, Building a Better Board Book (October 9, 2017). Rock Center for Corporate Governance at Stanford University Working Paper No. 68; Stanford University Graduate School of Business Research Paper No. 17-67. Available at SSRN: https://ssrn.com/abstract=3047910

Alex Baum

Value Act Capital ( email )

One Letterman Drive
Building D, 4th floor
San Francisco, CA 94129
United States

David Larcker (Contact Author)

Stanford University - Graduate School of Business ( email )

Graduate School of Business
518 Memorial Way
Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

Brian Tayan

Stanford University - Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

Jacob Welch

Value Act Capital ( email )

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