A CEO looks at the director's role: the CEO should not try to be board members' best friend ... and other key principles of CEO-board relations.
Directors & Boards › Vol. 28 Nbr. 2, January 2004
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Board Dynamics - Cover Story
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A CEO looks at the director's role: the CEO should not try to be board members' best friend ... and other key principles of CEO-board relations.
WHAT IS THE ROLE of a board of directors? Obviously, it must represent the interests of the shareholders. But how to do that well in a modern, complex corporation? How to balance appropriate oversight with meddling? How to get the most out of a board? I'll offer some observations on these points.
Some argue that the complexity of today's large companies demands that board members devote more time to their role. And the job is obviously becoming more time-consuming. But one reaches a point at which the more involved a director becomes in the details of the company, the less able he or she is to maintain the independence that is crucial to his or her role. A company can allow more time (and pay for that time), but to ask...See the full content of this document
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