News that warnings by a senior manager at MF Global over the bets that Chairman and CEO Joe Corzine made in the bond markets were brushed aside lend support to our demand that no excessive powers should be vested in any one individual at the top of a company. Quite apart from the overdue reform to separate the roles of Chairman and CEO there should also be less emphasis on the CEO. A collegial system with more equal authority (and pay) would be useful to ensure that decisions are taken on the basis of a more rounded thought-process. Succession planning should make sure that every individual can be replaced at short notice. The CEO should also have less authority to 'cleanse' lower-level management and get rid of potential candidates that could endanger his position. No one at the two management levels below CEO should be removed unless fully discussed with the board.
(06/12/2011)
There has recently been much debate and some confusion about a bedrock
principle of corporate law—namely, the essence of the board’s fiduciary
duty, and pa...
17 hours ago
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