Recent corporate scandals have made many U.S. boards questioned the wisdom of combining the chairman and CEO positions. But the decision to adopt a knee British model, separating the two top jobs, not understanding the complexity of the model is hardly the answer. Corporate governance across the Atlantic has its inherent problems. For example, despite some chairman makes the board more independent of the CEO, the location can lead to confusion as to the company's management. And the bad relationship between the chairman and chief executive officer can easily lead to conflicts and power struggles. U.S. needs an independent board leadership, but the achievement of such a guide, separate the two positions are not necessarily a clear improvement on the U.S. model. Instead, according to the authors, the majority of large U.S. companies, in addition to competent lead director or presiding director is likely to strike the right balance between effective management and leadership. "Hide
by Jay W. Lorsch, Andy Zelleke Source: MIT Sloan Management Review 6 pages. Publication Date: January 1, 2005. Prod. #: SMR164-PDF-ENG
Related Case Solutions & Analyses:
Can You Measure Leadership
Johnson & Johnson Consumer Products Brazil: Corporate Transformation (B)
PTC: Launching an Entirely New Product Platform
U.S. Food Aid: Cash or Commodities
Professional Services Module One: Introduction to the Challenges Facing PSFs
Making the Tough Team Call (A)
Looking Before You Leap: Assessing the Jump to Teams in Knowledge-based Work
Levendary Cafe: The China Challenge
Organizational and Leadership Issues
Club Atletico Boca Juniors
