A CEO that also serves as the chairman of the board gains a significant boost in their autonomy, a benefit unique only to someone in this kind of dual-leadership position. Under these conditions, the CEO-chairman individual can bypass some of the auditing measures that are often implemented when both roles are separated.
The CEO and the board chairman are two of the most powerful individuals within a large corporation. Since CEO duality combines the responsibilities of both positions into one person, it can help to cultivate a much stronger and more unified leadership figure.
After the implementation of CEO duality, accessing the assistance of a lead independent board director can improve the effectiveness of the overall board of directors. This individual serves as a liaison between the CEO and the board members and can support the CEO in a variety of ways.
Market trends are constantly changing within all sectors and industries, so it's crucial for a company to adapt to these developments to stay relevant and profitable.
The purpose of the board of directors is to guide the CEO and management officials toward focusing on activities and investments that encourage long-term prosperity. They also help these individuals better understand stakeholder objectives and communicate strategies to create more value for the business.
In business, the board directors vote on any potential pay increases for executive members of the company. However, the CEO also being the chairman of the board creates an innate conflict of interest. Under these circumstances, the CEO is essentially voting on their own compensation package.
A primary reason for the existence of a board of directors is for its members to monitor company operations and ensure that the CEO and other executive leadership members are performing for the company and the shareholders. The CEO serves as the management role with the most responsibility for maintaining and developing these operations.