In a public corporation, should the CEO of the company also be allowed to be the chairman of the board? What problems might this present?. Management

I believe that the CEO of the company should not be allowed to be the chairman of the board since it this type of arrangement is likely to decrease the objectiveness of the board. First of all, the CEO can nominate inside directors who will behave in a favourable way and will be unlike to call CEOs' actions into question. By the same token, the CEO can nominate the outside directors based toward his or her interest. Furthermore, the CEO who is also a chairman may manipulate an agenda and proceedings of board discussions so that their actions and behaviour are in the center of attention. It also allows the CEO to manipulate data in a favourable way, leading to information asymmetry. Taking into consideration all of the above mentioned disadvantages of the CEO being also the chairman of the board, it becomes clear why 43% of form on Standard & Poor's 500 index split these two positions into separate jobs.

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