Independent Directors Council
, a group of independent directors within the ICI, is not waiting for an answer on the independent chairman issue from the courts or Congress. And nor, does it believe, are many fund firms.
With that reality in mind, the IDC has issued a report
on how to implement the independent chairman rule.
The IDC suggests that the duties of an independent chairman include: managing all board meetings (and executive sessions of the board), setting meeting agendas and interacting with members of management (such as chief compliance officers, counsels, TPAs and consultants).
The chairman can also play a key role in reviewing contract renewals and conducting the board's self-assessment.
As for more practical considerations, the group recommends hiring a chair that is not nearing retirement age. And on the controversial issue of compensation -- the group recommends considering time commitment, a director's opportunity cost, and a chairman's involvement with other organizations.
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