What makes a good board of directors? It is a question often posed to investors,
stakeholders, and sometimes directors themselves. It is also a question not easily
answered. Shareholders are not privy to the conversations and debates that occur
inside the boardroom. They can only observe the outcomes and decisions made by
the collective group that makes up their representatives in the boardroom. This is why
CalSTRS works to ensure that the composition of the board is of the highest standard.
It is vital that boards of directors are structured to ensure there is proper oversight of
company management, strategy and risk.