Argument Quote by Charlie Munger
“I think it would be a great improvement if there were no D&O insurance . The counter-argument is that no-one with any money would serve on a board. But I think net net you'd be better off.”
About This Quote
Source Interview: Business commentary, 2015
Eliminating D&O insurance could improve governance, though it might deter wealthy individuals from board service.
In simple terms: Removing D&O insurance may improve governance.
Key Takeaway
Consider risks of board service incentives.
Themes
business
governance
risk
Mood
analytical
pragmatic
Type
financial
strategic
When to use this quote
- corporate oversight
- shareholder activism
- leadership selection
Key Concepts
insurance liability
board composition
Questions to Reflect On
- Is insurance essential for board duty?
- How to attract qualified directors without it?
A Different Perspective
Lack of insurance may increase liability fears.
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