Describe the arguments for and against the CEO of a company serving as the chair of the board of directors.
What will be an ideal response?
In roughly one-half of U.S. public firms, the CEO of the company also serves as chair of the board of directors. This practice of duality-holding both the role of CEO and chairperson of the board-has been declining somewhat in recent years. Arguments can be made both for and against splitting the roles of CEO and chairman of the board. On the one hand, the CEO has invaluable inside information that can help in chairing the board effectively. On the other hand, the chairperson may influence the board unduly through setting the meeting agendas or suggesting board appointees who are friendly toward the CEO. The recent trend toward separation of CEO/chair duality is likely to continue. Because one of the key roles of the board is to monitor and evaluate the CEO's performance, there is clearly a conflict of interest when the CEO actually chairs the board.
You might also like to view...
Which of the following is NOT a typical goal of a consumer relations professional?
A) Keeping old customers B) Attracting new customers C) Marketing new items or services D) Managing the new product portfolio
Physical appearance is only a concern for interviewees when the interview will be photographed or videotaped
Indicate whether the statement is true or false
When an independent variable is correlated with one other independent variable, the variables are said to be
A) collinear. B) pairwise. C) independent. D) mutually exclusive. E) None of the above
A technique using artificial intelligence to upgrade the quality of raw data is called:
A) dumping. B) data reconciliation. C) completion backwards updates. D) data scrubbing.