What shall we do about the board of directors? ... The board was elected to act in place of the owners. The board's responsibility is to sit in judgment on the management, especially on the performance of the chief executive, and to reward, punish, or replace the management as the board, in its wisdom, sees fit. That is what is supposed to happen. That is what may appear to happen. But it doesn't.
—Harold Geneen
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The CEO of the company I work for was the chairman of the board of directors. That was before chapter 11 bankruptcy. Now the new CEO is only a board member. I have to go see how my chickens are doing. I just bought a fox to guard the henhouse.
Posted by: mark | 29 March 2008 at 05:14
Agree with your quote. The Board should be required to have significant equity in the company its overseeing. My Chairman is also the CEO... but he's also the largest shareholder.
Posted by: chuck | 15 April 2008 at 20:26