Ad Hoc Panel Proposes Ways for Boards to Govern Better

U.S. boards of directors need to eliminate their taboo against dissenting votes and explore term limits for themselves if they are to become more effective overseers of companies' top executives, according to a new report by an ad hoc group focused on finding ways for boards to govern better.

The recommendations, part of an overhaul proposed by a group of 20 current and former chief executives, investors, academics and others, follow heavy criticism of boards for being asleep at the switch as the massive risks that led to the financial crisis built up.