Thanks for telling this story, it's enlightening.

Our company is more like a public service with a board made of paying customers. (yes, before you ask, I know this is fucked up)

I like your ideas of an intervention, and reaching out to a CEO that has experienced this kind of situation.

You're absolutely right: the board is definitely micromanaging the CEO. But what can I do about it? I'm just a software engineer.

Maybe have her read a book or so on what it means to be a CEO?

Keep in mind that if things go pear shaped it is her head on the block, not the board, and she should act accordingly.

Not having the official delegated authority to do something and not having any options are different. Step up and let it be known that you want to help.

She's your CEO. Do what she says.

If you have less than a point or two of equity, it ain't your problem.

Oh, and maybe keep an eye out for new jobs.