Effective Boards: Relationship Between the Board and the CEO

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12 жыл бұрын

Bob Finocchio and Lon Allan, both directors of several corporate boards, talk about the relationship between the CEO and the Board. Finocchio emphasizes that the CEO works for the Board, not the other way around. While both are working for the same objective--maximizing shareholder return--there is necessarily some tension between them and the board must be willing to challenge the CEO, particularly the "rock star CEO."
The CEO also has reasonable expectations of directors: They should be prepared, available, and have some passion for the company.

Пікірлер: 11

@brendongrant9247 Ай бұрын

really old school approach

@mugishacyizaeric628 4 жыл бұрын

So interesting topic for us interested in corporate governance thanks @ bob

@ananthakrishnan3693 Жыл бұрын

True...

@petef.9916 2 жыл бұрын

The board wanted to cash out. So they threw the founder under the bus by selling his company. "Ow yeah we just decided..." Is this good governance? Because he did not mention anything, not one negative thing about the CEO or the company. Sounds like the financial motives of the board was only thing that taken into account.

@zaraallysha 3 жыл бұрын

necessarily some tension in that relationship. CEO should be demanding of the board, vice versa. Passion for the company. Believe in the cores. Worry if CEO is rockstar, no criticism at all.

@MissionaryOnWheels 3 жыл бұрын

Its kind of like the comparison between Congress and President- CEOs like presidents can be removed. CEOs have a-lot of decision making power but the board makes up kind of like a business (congress) and in a sense it balances power in a company.

@zaraallysha 3 жыл бұрын

When founders should move on. Analysis to sell or not.