The substantial influence of CEOs diminishes the oversight function of the board of directors. Many outside directors have social ties with CEOs and their behavioral patterns are inconsistent with those of vigilant monitors. Dissents are rare, and those who do dissent are highly likely to be...

- Hiring former government officials can provide benefits in utilizing the accumulated knowledge, but also creates problems in that they can be abused as lobbying channels. - One of the primary causes of Korea's savings bank collapse was the hiring of former oversight agency officials and their...