The prime focus of this paper is to review and examine the findings made on how American companies can be optimally governed and how the current Corporate Governance process can be improved to formulate better mergers and acquisitions strategy. The author aims to examine the role of the board of directors in overseeing management, discuss managerial compensation with respect to change of control and certain traits preferred in Chief Executive Officer with respect to takeovers. The roles of independent directors, nominee directors and Chief Executive Officer are also explored in mergers and acquisitions deals. The dynamic relationship shared between these authority figures is assessed to see the effect they can have on increasing shareholder value. This paper talks about how the quality of corporate governance affects the merger deals and the shareholder returns that are generated out of these transactions.