EXECUTIVE TAKEAWAYS
■ Rubber stamp boards have a high approval record and poor decisions on an ex-ante basis. ■ Evidence indicates that Enron operated with a rubber stamp board. ■ Enron directors questioned management and were qualified and financially incentivized. ■ Crowded agendas and lack of skepticism provide a perfect storm for rubber stamping. ■ We encourage director vigilance during both good and bad times.
Lucy F. Ackert, Professor of Finance Amine Khayati, Clinical Assistant Professor of Finance James G. Tompkins, Professor of Finance
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