The Chair And Ceo Relationship

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ntroduction The Chair and CEO relationship has gained importance in literature subsequently after the behavioural perspectives on board got increased recognition by 1990s (Kakabadse et al. 2006, p.136). This report reviews available literature on the relationship of chair with CEO and the factors affecting that relationship. The study is confined only to separate board leadership and CEO roles. Importance of the relationship Many literature recognised the effect of nature of the chair and the CEO relationship on the various performance measures of the organizations. The rapport between the Chair and the CEO fortifies the relationship between management and board (Kiel et al. 2012, p.233) since the chair is the main point of contact…show more content…
The quality of the chairman and CEO relationship can impact the happenings in the boardroom (Kakabadse et al. 2006, p.134). A positive relationship between chairman and CEO facilitates an open non-judgmental quality discussion in the boardroom (Kakabadse et al. 2006, p.141), thus improving board performance. According to Hossack (2006, p.1), the ultimate beneficiary of a strong chair-CEO relationship is their company, as they are performing distinct roles, while supporting each other. However Murden (2012) argues that such a relationship would be rewarding to both of them. When CEO needs mentoring, the chair would offer valuable counsel. Robert (2002, p.493) states that the chairman positively contributes to CEO performance. The chair being the performance evaluator of the CEO, the trust and respect between them cannot be overemphasized (Kiel 2012, p. 233). Likewise CEO would be genuinely disclosing the important matters to the chair, without last hour surprises. It is the responsibility of chair to get to know from the CEO, of current transactions on matters concerned to the board (Kiel 2012, p.233). A harmonious relationship between chairman and CEO can help an organization to resolve even severe issues (Kakabadse et al. 2006, p.147) & (Murden 2012). On the contrary, if their relationship turns bitter with frequent clashes, it may lead to poor board decisions (Conger 2009, p.53). Absence of a sound relationship
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