"The best solution, Buffett instructs, is to take great care in identifying CEOs who will perform capably regardless of weak structural restraints. In public companies, large institutional shareholders must exercise their power to oust CEOs that do not measure up to the demands of corporate stewardship. **Outstanding CEOs do not need a lot of coaching from owners, although they can benefit from having a similarly outstanding board**. **Directors therefore must be chosen for their business savvy, their interest, and their owner-orientation**. According to Buffett, one of the greatest problems among boards in corporate America is that members are selected for other reasons, such as adding diversity or prominence to a board—or, famously, independence." ([Location 237](https://readwise.io/to_kindle?action=open&asin=B01J2SLA5O&location=237)) *** **Tags** — [[quotes]], **See Also** -- [[Warren Buffett]], [[Charlie Munger]] **Source** — [[202308141129 — B — The Essays of Warren Buffett]]