Governance
What is board independence?
How many directors the company says are independent, meaning they have no job, business or family ties to the company that could sway their judgement.
How it is calculated
Directors the latest proxy statement calls independent, out of the directors whose status it states.
How to read it
Stock exchanges require most companies to have a majority of independent directors, and large companies usually go well beyond that. Independence matters most when the CEO also chairs the board.
Keep in mind
The company decides who counts as independent. It does not capture long service or personal friendships, and controlled companies, where one holder or group has more than half the votes, are exempt from the majority rule, though not from audit committee independence.
Where the numbers come from
Scrutar reads board independence from the company's latest proxy statement (DEF 14A) and the Form 8-K that reports its annual meeting's vote, using the figures the company itself tagged or filed.