New in Stanford Closer Look Series: Where Experts Get It Wrong: Independence vs. Leadership in Corporate GovernanceThursday, March 14th, 2013
Where Experts Get It Wrong: Independence vs. Leadership in Corporate Governance [PDF]
Authors: Professor David F. Larcker, Stanford Graduate School of Business, and Brian Tayan, Researcher, Center for Leadership Development and Research, Stanford GSB.
Date: March 14, 2013
Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance and Leadership No. CGRP- 32
Over the last few decades, researchers have taken a thorough and critical look at corporate governance from various perspectives. For the most part, they have found that structural features of corporate governance have little or no relation to governance quality.
For example, there is no evidence that having an independent chairman benefits companies. At the same time, there is evidence that CEOs with different personalities require different levels of oversight.
We examine this issue in greater detail. We ask:
- Why isn’t more attention paid to contextual considerations in corporate governance?
- Why don’t governance experts base their recommendations on research rather than subjective opinion?
- How can corporate stakeholders take into account the quality of a company’s leadership to design more effective governance systems?
Read the attached Closer Look and let us know what you think!
Keywords: corporate governance, CEO and executive leadership, CEO personality, CEO-Chairman duality
Topics, Issues and Controversies in Corporate Governance and Leadership: The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important. Larcker and Tayan are co-authors of the book Corporate Governance Matters.