CMPE Organizational Governance Practice Test

Independence on the board matters because independent directors provide objective judgment, keep management accountable, and bring diverse perspectives that improve strategic decision‑making and risk oversight. Having a majority of independent directors ensures there are enough voices free from management influence to challenge assumptions, scrutinize proposals, and protect shareholders’ interests. Executives on the board blur governance and operations, reducing objectivity; limiting meetings or delegating all decisions to management erode oversight and responsiveness. Therefore, establishing a board with a majority of independent directors most strengthens independence and decision quality.