Stephen Bainbridge has an idea for addressing the shortcomings of how corporations are governed today: replace the board of directors with a company.
The UCLA law prof and his counterpart from the University of Chicago, Todd Henderson, have co-authored both a paper and a book on the topic. They argue that it’s time to allow consultant-like firms to oversee the corporation. The duo even has a kitschy name for their fictitious creation: “Boards R Us.”
Bainbridge talked recently about his board-services provider (BSP) idea, why we don’t have it today and the state of boards today. The interview is edited for length and clarity.