The All-Powerful CEO Bad for Boardroom
Simon C. Y. Wong
Northwestern University School of Law; London School of Economics; McKinsey & Co. Inc.
Financial Times, November 13, 2011
This commentary argues that disparity in stature between the chief executive and other directors (for example, a 'star' CEO whose accomplishments and renown are much greater that the non-executive directors) can harm board performance and provides suggestions on how parity in stature among board members can be maintained so as to preserve the board's standing and authority.
Note: This article is drawn in part from 'Elevating board performance: The significance of director mindset, operating context, and other behavioral and functional considerations' (available at http://ssrn.com/abstract=1832234).
Number of Pages in PDF File: 2
Keywords: board of directors, star CEOs, relative status, group dynamics and behavior
JEL Classification: G34, L20
Date posted: November 17, 2011