Chapter 5 Assignment - the hands of one person eliminates...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 5 Assignment One and the Same Read the Real World Application on page 100 One And The Same . Site the advantages and disadvantages in detail of having one person serve as the CEO and Chairman of the Board for a company. The advantages of combining the CEO and Chairman of the Board for a company put the leadership role in the hand of one person and they could say that potential for conflict is minimized. They could believe that the board is given the benefit of leadership from someone who is in touch with the inside organization rather than outsider who will have to catch up on everything. The disadvantages of combining the two positions the company’s entire decision making process lies in
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the hands of one person eliminates the checks and balances process that the board was created for. Poten±al conFicts of interest can create opportuni±es for abuse, as the Chairman in his CEO role they may abuse the posi±on and conceal from the board poten±al problems and any issues created by the management. The CEO could populate the board with friends and they will be more willing to increase salary and bene²t packages. This could create the CEO becoming his/her own law and no independence of the board is compromised. It would be hard for the board to hire and ²re the CEO with him being on the board as well....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern