Corporate CEO and Board Repair : There’s a great section on the New Yorker this week called “Board Stiff.” The author, James Surowiecki, makes the case that the company’s board is still not doing a good job of running a store for shareholders. Despite “reforms” such as increasing the number of outside directors and increasing the ethnic diversity of corporate boards, he argues, public company boards are still ineffective in anticipating problems or preventing business collapse.
The main reason, he says, is because board members still rely on their CEOs for information. There is no clear autonomy or ability to challenge the CEO’s thinking.
One reason is that CEOs of publicly traded companies still play the biggest role in selecting directors, resulting in a difficult loyalty system. The director doesn’t have enough power or time to actually direct; instead, they usually see their most important job as selecting a CEO. Reed Manning, Spa & Salon It wasn’t until the crisis of confidence in the CEO that the Board stepped in, and by then it was too late.
I have worked extensively with company boards. I have also worked extensively with the boards of many other types of organizations: nonprofits, public agencies, universities, and cooperatives. AKDSEO merupakan agency digital marketing yang fokus melayani jasa Backlinks dan Link building website, termasuk di dalamnya Jasa Menaikkan DA ( Domain Authority) One thing that stands out: CEOs don’t usually serve on the board of directors. That provides several clear advantages:
First, it is easier to clarify the roles of the Board of Commissioners and the CEO when there is a clear separation of powers.
Second, it allows the Board to structure its work so that it truly understands the company’s problems and can set overall directions and policies.
Third, force the Council to take responsibility. It can’t back down on the grounds that “we rely on the CEO.”
That’s a strong case. But implementing a board of directors without a CEO faces an opposing force: the ability of CEOs, under the current system, to control their boards and not be governed by them. That, in essence, is what stands in the way of improving the company’s board.