Paradigm lost: The imperial CEO

There is no compelling reason why the CEO of a company should be a dominant figure, an imperial CEO. It is the responsibility of the board of directors to restrain the greed of the CEO, and it cannot be done in large companies with today's too-powerful CEO, even if most of the reforms proposed...

Full description

Saved in:
Bibliographic Details
Published in:Directors and Boards 2003-07, Vol.27 (4), p.41
Main Author: D Quinn Mills
Format: Article
Language:English
Subjects:
Boards of directors
Chief executive officers
Effectiveness
Guidelines
Scandals
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:There is no compelling reason why the CEO of a company should be a dominant figure, an imperial CEO. It is the responsibility of the board of directors to restrain the greed of the CEO, and it cannot be done in large companies with today's too-powerful CEO, even if most of the reforms proposed are enacted. If a board wants to effectively oversee a CEO, what should be done? Key steps include: 1. The CEO should not be chair of the board of directors. 2. The board should select both the CFO and the chief human resources officer, and should review their performance periodically. 3. The CFO and CHRO should have certain responsibilities for which they report to the board as well as the CEO. 4. A management board should be established that is chaired by the CEO and whose members are the top executives of the company.
ISSN:0364-9156