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The All-Powerful CEO Bad for Boardroom

Financial Times, November 13, 2011

2 Pages Posted: 17 Nov 2011  

Simon C. Y. Wong

Northwestern University School of Law; London School of Economics; McKinsey & Co. Inc.

Abstract

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).

Keywords: board of directors, star CEOs, relative status, group dynamics and behavior

JEL Classification: G34, L20

Suggested Citation

Wong, Simon C. Y., The All-Powerful CEO Bad for Boardroom. Financial Times, November 13, 2011. Available at SSRN: https://ssrn.com/abstract=1960356

Simon C. Y. Wong (Contact Author)

Northwestern University School of Law ( email )

375 E. Chicago Ave
Chicago, IL 60611
United States

London School of Economics

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://www.lse.ac.uk/collections/law/staff/simon-wong.htm

McKinsey & Co. Inc. ( email )

1 Jermyn Street
London, England SW1Y 4UH
United Kingdom

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