Boards of directors are rubber stamps. Corporate governance is a joke. Guess who sits on boards of directors? Other CEOs! CEOs get together (that is, conspire)

Boards of directors are rubber stamps. Corporate governance is a joke. Guess who sits on boards of directors? Other CEOs! CEOs get together (that is, conspire) to set their own compensation, which is exactly why, for example, they all get massive golden parachutes for failure. Even the largest institutional investor of a publicly owned corporation has less than 10% of the stock. Ownership is very diffuse, which is why management has so much power despite so little stock.