Slowly figuring it out

Boards are beginning to gain control over their management teams; especially over their CEOs. But there’s a long way to go. While the presence of independent directors is on the increase, most boards remain well supplied with senior managers double-hatted as directors: troops debarked from the Trojan Horse. Moreover, the great majority - even when more than half their directors are independent - continue to combine the CEO/Chair positions. How do you think the Trojan Horse got through the gate?

Please see this article from Saturday’s Wall Street Journal, providing an excellent summary of the issue. It includes a concise but effective narrative of the problem and the factors shaping its evolution, as well as several germane facts and charts. There are also a few interesting quotes; note the difference between those of outside observers and the one from a former CEO. The article may be restricted to subscribers. If so, subscribe.

We’re going to try to change the subject over the next few days, spending more time on CEOs, management in general, and women in the top spot.