- Title
- The board and the CEO: what is their relationship?
- Creator
- Waring, Peter
- Relation
- Contemporary Issues in International Corporate Governance p. 27-42
- Relation
- http://www.tup.net.au/Publications/Sustainability_Corporate_Social_Responsibility/International_Corporate_Governance.aspx
- Publisher
- Tilde University Press
- Resource Type
- book chapter
- Date
- 2009
- Description
- The relationship between boards and chief executive officers is likely to come under intense scrutiny as the antecedents of the 2008-2009 global financial crisis are forensically examined in the years to come. This is a relationship that has long interested corporate governance scholars - since the days when managerial power grew along with shareholder concerns that their agents may not always act in their interests. It is the capacity and willingness of directors to monitor and influence management in fulfilling their duties which is of central importance in ensuring an effective balance of corporate governance power. This chapter will examine these concerns and ask whether there is evidence of the persistence of managerial hegemony, that is, evidence of superior executive power over the board. This chapter will examine the early history of senior management in corporations, focusing particularly on Alfred Chandler's seminal work on the 'managerial revolution' and agency theory. This discussion leads logically to an examination of the market-based solutions to agency problems and assessment of the nexus of contracts theory which has influenced these solutions and shaped the relationship between boards and senior executives. Following this analysis, the chapter will turn to a critical examination of the theory and empirical evidence supporting the persistence of the managerial hegemony thesis, as well as examining recent trends which may have the effect of limiting the power of managers. The chapter concludes by arguing that in the deregulatory context of the last two decades in liberal market economies, the relationship between the board and CEO, (with exceptions) has been marked by a complicity and acquiescence leading to poor corporate governance.
- Subject
- boards; chief executive officers; corporate governance; corporate management; senior executives
- Identifier
- http://hdl.handle.net/1959.13/918490
- Identifier
- uon:8619
- Identifier
- ISBN:9780734610713
- Language
- eng
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