While Glass Lewis’s report: “In-Depth: Independent Chair” reiterates its personal view that an independent chair board leadership structure is better than a combined CEO/chair structure, the report also acknowledges the lack of consensus on this issue and presents evidence on both sides of this ongoing debate – both in opposition to, and in favor of - a combined CEO/chair structure. Among the factors addressed are the impacts of the chosen structure on corporate performance, compensation costs, leadership confusion, and boundary conflicts. The report includes trend data and illustrative corporate controversies that have prompted changes in leadership structure.
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This post first appeared in the weekly Society Alert!