Shareholders should welcome knowledge workers as directors to improve corporate governance. The focus should shift from prioritizing shareholders to valuing firm-specific knowledge investments. To prevent exploitation and encourage employees to invest in company-specific knowledge, insiders should have more influence on the board, be elected by knowledgeable employees, and have a neutral chairperson. These changes can lead to better incentives for knowledge investors, reduce executive dominance, boost employee motivation and loyalty, ensure board diversity, and lower costs. This reform could help address the current crisis in corporate governance and move towards a more effective theory of the firm.