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Corporate Governance and Chairmanship A Personal View$
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Adrian Cadbury

Print publication date: 2002

Print ISBN-13: 9780199252008

Published to Oxford Scholarship Online: September 2011

DOI: 10.1093/acprof:oso/9780199252008.001.0001

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The Chairman and the Chief Executive

The Chairman and the Chief Executive

Chapter:
(p.101) 7 The Chairman and the Chief Executive
Source:
Corporate Governance and Chairmanship A Personal View
Author(s):

Adrian Cadbury

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199252008.003.0007

This chapter describes the respective roles of chairmen and of chief executives. It presents arguments on whether the jobs of the chairman and the chief executive are separate or combined. The arguments on the side of combining the roles of the chairman and of the chief executive are that it is common practice, that it is the way in which companies are run by their founders, and that it provides undisputed leadership internally and externally. There are a number of arguments for separating the roles of chairman and of chief executive: that different mixes of ability and experience are required for the two posts, it is up to the chairman to build the board team, putting the two positions together concentrates a great deal of power in the hands of one person, finally, that the combination makes it more difficult for the board to carry out its supervisory function.

Keywords:   chairmen, chief executives, supervisory function, leadership, board team

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