Categories: BoardsGovernance

Chairman-CEO Splits? Not Likely

THE AVERAGE HEADLINE reader might conclude that the idea of separating the chairman and CEO roles is gaining momentum. In December, both the New York Stock Exchange and The Clorox Co. announced they were going with the new governance flow. The NYSE, as part of its sweeping reform, appointed former Goldman Sachs President John Thain-“the anti-Grasso”-as its new CEO and announced the search was on for a non-executive chairman to replace interim head John Reed. Clorox tapped Robert Matschullat to head its board, while Gerald Johnston retains the CEO title.

Are these signs that the British model is taking hold in the States? Not bloody likely, many experts say. “Most of the CEOs I’m in contact with don’t see this as a priority,” says Elizabeth Saunders, chairman of Chicago-based Ashton Partners, a consulting firm that helps such clients as Clorox, R.R. Donnelly and Kraft Foods with investor relations and corporate communications issues. Though troubled companies may be forced to add such independence to appease criticism and shareholder fury, she says, most healthy companies aren’t seriously considering it.

The real priority for most CEOs today, she says, is quality and diversity of board members. “I know several companies that have been contacted by people asking, €˜Why don’t you have any minority directors and women on your board?’ They’re hearing that a lot more.”

Add to that the task of finding a separate, executive chairman who is also going to be serving in an operating capacity-and willing to take on the liability of such a significant role-and you’ve got one tough challenge. At the moment, only 15 of the top 500 companies have split chairman-CEO roles. “We’ll see what happens in ’04,” says Saunders, “but I will be shocked to see that number much higher than it is today.”


admin

Share
Published by
admin

Recent Posts

‘Teamship’ Is The Leadership Skill Of The Future

Lone-wolf leadership doesn't work anymore. Today’s most impactful leaders foster cultures of collaboration and shared…

12 hours ago

Manufacturing CEO Confidence Sinks Amid Continued Volatility  

U.S. manufacturers rate current conditions at their worst level since the pandemic, but continue to…

14 hours ago

A Strategy For Getting The Right People

An all-star team is the foundation for success. CEO Barrow shares his tool to help…

2 days ago

At CEO Forum In Washington, Little Support For Trump Economic Policies

The annual Yale CEO Caucus drew many of the top names in American business—and little…

2 days ago

The Most Important AI Question For CEOs

Instead of poking about this as a “Should we explore AI?” moment, perhaps we need…

4 days ago

Six Questions For Self-Understanding

Having clarity about who we are allows us to envision the person—and leader—we want to…

4 days ago