What significant change in corporate governance began in the 1990s?

The significant change in corporate governance that began in the 1990s is characterized by a shift from captive boards to monitoring boards. This transformation marked an evolution in how corporate boards operated, moving from a model where board members often had close ties to management and could be seen as passive participants, to a more active role where they focus on oversight and accountability.

In the 1990s, boards began to prioritize independent oversight, ensuring that they could effectively monitor management activities and make decisions that align with the interests of shareholders. This shift was prompted by various corporate scandals and financial crises that highlighted the need for stronger governance practices. Independent directors were increasingly recognized as vital for providing unbiased judgment and strategic guidance, which helped to enhance the integrity of the decision-making processes.

The other options represent important topics in corporate governance discussions but do not reflect the core focus of the paradigm shift that occurred in the 1990s as decisively as the transition to monitoring boards. For instance, while there was indeed an increase in the regulation of corporate practices and greater awareness of corporate social responsibility during this period, the essence of governance change was primarily about how boards interacted with management and their role in safeguarding shareholder interests. The emphasis on executive autonomy also saw developments, but the crucial change