Examine the 2011 annual report of General Mills, maker of cereals such as Cheerios, Betty Crocker cake mixes, Progresso soups, and other foods (phx.corporate-ir.net/phoenix.zhtml?c=74271&p=irol-reportsannual). Turn to the listing of General Mills’ Board of Directors on page 16 of the annual report.
1. How many board members does General Mills have? How many of them are General Mills executives?
2. How many of the nonexecutive directors are executives or retired executives of other companies?
How many are academics? What other positions are represented on the board? How does the background of board members influence their ability to carry out the responsibilities of the board?
3. How many members of the General Mills’ Board of Directors are on the audit committee? Are any audit committee members also General Mills executives? Why would investors want to know the composition of the audit committee?