The days of CEOs as "supreme ruler" in the corporations are passing as more corporate boards turn the CEO job into an "at-will" position.
May 7, 2004 (Press Release) --
In American corporations, everyone knows who shapes the powers, style and values that define the role of the chief executive officer -- the CEO himself. As publisher and business speaker Ralph Ward notes in the May issue of online newsletter Boardroom INSIDER, the CEO has always taken the lead in "shaping his or her own job description, and the board of directors, which is supposed to be the CEO’s boss, just goes along for the ride."
But increasingly, boards are calling the shots on what the CEO can and can’t do. With a tide of proxy votes this spring for limiting CEO pay and splitting the board chairmanship from the CEO role, Ward finds more boards viewing the chief executive as an "at-will" position, taking charge on CEO succession planning, performance evaluation and pay design. "The board is becoming the voice that defines the job of the CEO, and not the CEO himself."
Also in the May issue of Boardroom INSIDER:
[] Emergency CEO succession - Lessons from McDonalds.
[] 4 board rules for shaping corporate strategy.
[] Separate board chairmen - how do they really work?
[] Q&A: What does the board say when a scandal hits?
Ralph D. Ward is an international business speaker, consultant, and publisher of Boardroom INSIDER, the online newsletter for better boards and better directors (www.boardroominsider.com). He is author of the books Saving The Corporate Board, Improving Corporate Boards, The Boardroom INSIDER Guidebook, and 21st Century Corporate Board. For more information, contact (989) 833-7615.
But increasingly, boards are calling the shots on what the CEO can and can’t do. With a tide of proxy votes this spring for limiting CEO pay and splitting the board chairmanship from the CEO role, Ward finds more boards viewing the chief executive as an "at-will" position, taking charge on CEO succession planning, performance evaluation and pay design. "The board is becoming the voice that defines the job of the CEO, and not the CEO himself."
Also in the May issue of Boardroom INSIDER:
[] Emergency CEO succession - Lessons from McDonalds.
[] 4 board rules for shaping corporate strategy.
[] Separate board chairmen - how do they really work?
[] Q&A: What does the board say when a scandal hits?
Ralph D. Ward is an international business speaker, consultant, and publisher of Boardroom INSIDER, the online newsletter for better boards and better directors (www.boardroominsider.com). He is author of the books Saving The Corporate Board, Improving Corporate Boards, The Boardroom INSIDER Guidebook, and 21st Century Corporate Board. For more information, contact (989) 833-7615.
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