To address distress, any of the following changes in the focal firm’s

To address distress, any of the following changes in the focal firm’s board structure are consistent with theory EXCEPT:

a. replacing insiders with outsiders.
b. limiting the ability of the board to veto the CEO’s proposals.
c. requiring directors to hold equity shares.
d. limiting the tenure of directors
e. ending the staggering of board elections
f. reducing the size of the board.

ANSWER

B