Ready, Fire, Aim! - Mihail's Public Blog: Post-Enron trend towards splitting posts of CEO and Chairman

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Monday, November 11, 2002

Post-Enron trend towards splitting posts of CEO and Chairman

In the post-Enron world it is looking more likely that a larger number of companies will choose to split the CEO role from that of Chairman of the Board. According to this Wall Street Journal story (subscription required):

And Monday, a blue-ribbon commission of the National Association of Corporate Directors in Washington will strongly urge that other concerns bolster governance by considering the role split. "It is difficult for us to see how an active CEO, already responsible for the operations of the corporation, can give the time necessary to accept primary responsibility for the operations of the board," the panel's report says. The 21-member commission, which examined boards' risk oversight duties, included the retired heads of eight major companies.

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