Which one of the following corporate board characteristics usually improves corporate governance?

1. The board has a majority of outsiders who have experience and aren't too busy.

2. CEO is the chairman of the board.

3. The board is as large as is possible.

4. Board members are paid at a rate higher than their peers and their payment is mostly cash.

5. The board has a majority of insiders from company management on it who bring first-hand knowledge of how the company operates.