"One board member is the son of a highly influential and wealthy man in those parts, I understand, and I do not think he would kow-tow to Jim because he needs the money or does not have the guts to object. He would resign. Period. He does not."
Actually the truth is that highly influential and wealthy man (I agree with you on those points) was on the board and he RESIGNED.
Far too many executives have become more concerned with the "four P's" - pay, perks, power and prestige - rather than making profits for shareholders.