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date: 23 January 2021

Abstract and Keywords

This chapter includes extra insights into how the board works. It shows that the most relevant board decisions are made in the context of certain committees and not in the board setting. It then studies the three main board committees—nomination, compensation, and audit—and assesses the available research on the key aspects of their composition. It shows that there is a positive relationship between the expertise and independence of board committees and key effectiveness measures, although process research determines that there are tensions which committees face.

Keywords: board committees, board decisions, main board committees, effectiveness measures, process research, expertise, independence

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