Tesco
Chairman and CEO
Article

Chairman and CEO

The Controversy over Board Leadership Structure

David F. Larcker and Brian Tayan
Stanford Business, 2016
Read the article

Read or listen offline

автоматическое преобразование текста в аудио
  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×
автоматическое преобразование текста в аудио

Editorial Rating

7

Recommendation

Does moving away from a dual CEO/board chair corporate governance structure lead to better company oversight and performance? Not always, according to David F. Larcker and Brian Tayan of Stanford University. In this succinct report, Larker and Tayan use a sampling of 187 top firms to explore the logic, logical fallacies and statistics surrounding separation of the CEO and board chair roles. They raise pertinent questions for companies considering changes to their leadership structures. getAbstract recommends this report to business leaders and corporate shareholders.

Take-Aways

  • In 2015, approximately half of all companies listed on the S&P 500 had a dual CEO/board chair role. Ten years ago, more than 70% of companies had the dual governance structure.
  • Companies who choose to separate the CEO and board chair roles may do so as a result of pressure from “shareholder activists.”
  • Research shows that separating the two roles typically has “little impact on performance” and can even decrease profits.

About the Authors

David F. Larcker is senior faculty member of the Center for Corporate Governance at Stanford. Brian Tayan is a researcher with the Corporate Governance Research Program at Stanford.

Comment on this summary or Начать обсуждение