1 Sometimes it is optimal for a firm to have a friendly board. From the two figures above, it can be concluded that friendly board is optimal when the private benefit CEO can extract from retaining control rights belongs to: (0, ^] [^, ^] [^, )

2 When Billy worked for Company Arron as the chairman of the board, he improved firm performance and investment efficiency by increasing the number of outside directors hired by the board. Now, Billy left Arron and became the chairman of the board for Company Championship. Championship has got publicly listed for only three year while Arron has been the leading company in the same industry for many years. Championship values Billys working experience in Arron and pay him much higher salary. Billy plans to implement a similar change in board structure in Championship. Is this a wise decision?