Mismatch in the Boardroom

Abstract

This article 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 boards can maintain stature parity among their members so as to preserve their 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, D23, D82