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How is the relationship between your Board #Chair and the #CEO?
Spencer Stuart has recently published a 7 page article on this topic. As always, Iāve done the reading and summarising on your behalf, so you can save your most precious āØ asset, namely your time ā±ļø:
š” Key insights
1. Firstly, it is with delight to observe that the US šŗšø is moving towards Europe šŖšŗ - The dynamic between a board chair & CEO has become crucial in today's corporate landscape. U.S. boards are now more frequently separating the roles of chair & CEO, a practice that has long been established in Europe.
2. Currently, nearly 60% of S&P Global 500 companies have distinct individuals serving as board chair & CEO, with 39% appointing an independent board chair, as required by NYSE or Nasdaqās independence rules.
3. This trend is significant, as many shareholders believe that separating the roles of chair & CEO enhances the board's independence, resulting in more effective oversight.
4. However, it also introduces a new dynamic between the board chair & CEO. Their relationship must be close enough to enable strong, direct collaboration, yet not so close that it compromises the board's independence.
5. So, what sets apart an effective chair-CEO relationship? Unsurprisingly, #Trust is the most crucial factor.
The authors also highlight 5 specific actions that chairs can take to build trust with a CEO; these are:
1. Get aligned on CEO compensation
2. Give clear, manageable feedback as part of the evaluation process
3. Take the fear factor out of executive sessions
4. Pay attention to board composition & chemistry
5. Support the CEO in times of adversity
šš¼ Did you know that Iāve made a public commitment to leverage my 26 years of professional experience gained in some of the worldās most admired companies into a commercial #Board role?
But donāt take my word for it, take it from Todd Hamilton, the Chief operating Officer of the International Coaching Federation (ICF):
āNavid has been an invaluable member of the Global Nominating Committee for four years. His insights and dedication have significantly contributed to our success in identifying and selecting top-tier candidates. His strategic thinking and commitment to excellence are truly commendable. Heās been instrumental in professionalizing the efforts of that team and is a great thought partner on any number of leadership, development and HR related topics.ā
š¬ DM me if you are a #Chair or a search firm partner and looking to enhance a board with extensive international experience in #People #Culture and #CommercialAcumen for #Remco or #NomCo purposes
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