Relationship Between Ceo and Chairman of the Board

Topics: Board of directors, Corporate governance, Non-executive director Pages: 2 (464 words) Published: August 28, 2013
Relationship betwwen chairman and CEO

The relationship between an association's CEO and board chair is a delicate one that can make or break the organization. The tension between the executive and non-executive has been there for quite some time which is a clear indication that nobody seem to care about the sour relationship and that’s the problem of poor management and this shows that there is lack of communication. Trust, Communication and Compromise are three fundamentals of any relationship, including the one between association CEOs and their board chairs. According to the three pairs interviewed for this article, if you lack any of these elements, it can have ramifications for the association's well-being The problem that I see in between the executive and non executive members is lack of communication which is very dangerous and also luck of respect for each other that’s why the executive directors are able to make decisions on their own. They must ensure that they are having regular and effective communication to ensure that potential concerns are addressed before they grow into significant issues like in this case the resignation of the senior independent non-executive director. Because the non-executive are not part of decision making, there will be autonomy and this will result into non-executives being demotivated which can result in companies objectives not being achieved. The assumption that the non-executive had no better understanding of the project is an indication of poor judgment, lack of respect and trust for the non-executive directors and this can have an adverse impact of the businesses of the organization.

Ways of managing
Ensure that there is a proper balance between the executive and non-executive directors and to make sure that the non-executive directors are providing influence and checks The CEO must negotiate with the senior independent non-executive director, to reverse his decision of resigning and promise him full...
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