ANSWER 1:

BOARD STRUCTURE
1. Audit and Finance Committee :
a. Meet at least quarterly
b. Review and evaluate the financial information of the company
2. Nominating and Cooperate Governance Committee:
a. Evaluate the director candidates and the effectiveness of the board.
3. Compensation Committee :
a. Meet at least four times a year
b. Assess the compensation plans of the executives and the board members

BOARD COMPOSITION
Eight board members:
1. Arthur Levinson (The chairman of the board)
2. Tim Cook (CEO)
3. William Campbell
4. Sue Wagner (Blackrock)
5. Millard Drexler
6. Al gore
7. Ronald Sugar
8. Robert Iger.
Evaluation of board Composition
PROS:
1. Avoid Agency problems (separation of the CEO and Chairman)
2. Most are Experienced in finance industry
3. Degree of Independence of the board
4. Most of the directors are outsiders (improves the control and strategic functions of the
board.)
CONS:
1. Information sharing (Insider- trading
2. Short-termism
a. It is often perceived that investors fixation with short-term performance, harms the
long term returns.
b. Those perceptions could be counter argued the other way around, short-termism
may be fueled by investor pressure it is equally true that investors select companies
for their short time frames.
3. Too many outsiders and only one insider
Possible solution to combat possible problem:
Managers can take action and restructure their communications, to neutralize their effects,
particularly through language used.