Effective Boards: Relationship Between the Board and the CEO
Bob Finocchio and Lon Allan, both directors of several corporate boards, talk about the relationship between the CEO and the Board. Finocchio emphasizes that the CEO works for the Board, not the other way around. While both are working for the same objective--maximizing shareholder return--there is necessarily some tension between them and the board must be willing to challenge the CEO, particularly the "rock star CEO."
The CEO also has reasonable expectations of directors: They should be prepared, available, and have some passion for the company.
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So interesting topic for us interested in corporate governance thanks @ bob
@ananthakrishnan3693
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True...
The board wanted to cash out. So they threw the founder under the bus by selling his company. "Ow yeah we just decided..." Is this good governance? Because he did not mention anything, not one negative thing about the CEO or the company. Sounds like the financial motives of the board was only thing that taken into account.
Its kind of like the comparison between Congress and President- CEOs like presidents can be removed. CEOs have a-lot of decision making power but the board makes up kind of like a business (congress) and in a sense it balances power in a company.
really old school approach
necessarily some tension in that relationship. CEO should be demanding of the board, vice versa. Passion for the company. Believe in the cores. Worry if CEO is rockstar, no criticism at all.
When founders should move on. Analysis to sell or not.
Count markula is also a well known landlord of master shake a reputable source of business knowhow . I know his sister.
I am watching this video at the age of 25 one day I will be a CEO
Mike Lindell is the complete opposite of the CEO