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Navigating Conflicts and Incentives in Board Governance
This chapter explores conflicts of interest in board behavior, focusing on the impact of board members' personal investments and financial incentives. It discusses the challenges posed by directors having significant financial stakes in the companies they serve on, highlighting the need for balancing financial interests with good governance practices and diversity. The chapter also delves into decision-making complexities in boardrooms, addressing issues like executive pay disparities, governance structures, and the role of independent directors in adding value to companies.