Companies face pressure to separate the roles

Executive Summary

Corporate governance advocates and institutional investors are pushing companies to separate the roles of CEO and chairman, asserting that allowing one individual to hold both jobs creates potential conflicts. While some corporations, such as scandal-plagued Wells Fargo, have made the change, executives at other companies have argued it could be disruptive. A key takeaway:

  • The number of companies in the Standard & Poor’s 500 Index that are run by a dual CEO/chairman declined from 77 percent in 2011 to just over 50 percent in 2016.

DOI: 10.1177/237455680320.n5