Executive Compensation Ceo And Chairman Of The Board

There has been a dilemma about appointing the same person as a CEO of the company and the Chairman of the board. That person could gain too much power in their hands and act not in best interests of the company. These two roles often go side by side, conflicting one another, on the other hand. Some critics were arguing about time management and combining management control and governance in one person’s hands. Another argument is that person might gain so much power that he will not act in best interest of the company or the board won’t be able objectively evaluate his performance (in case of executive compensation). My research paper will include next arguments: †¢ Who are the CEO and the Chairman of the company and their roles †¢ Combined†¦show more content†¦The CEO is responsible for leadership of the business, managing the authorities, and also : †¢ Developing the strategy, recommendations to the Board †¢ Developing annual plan and budgeting †¢ Be responsible for the Board’s performance †¢ Oversee corporate policies †¢ Developing organizational structure and establish processes and systems to ensure the efficiency of resources †¢ Developing of performance targets †¢ Ensuring that financial results, business strategies are communicated to the community †¢ Ensuring smooth flow of information between the Board and executives †¢ Reporting to the Chairman †¢ Ensuring that management put procedures in place to ensure compliance with all regulations †¢ Internal control †¢ Keeping the Chairman informed on all materials. The Chairman, on the other hand, is a head of this board. The Board is usually elected by shareholders to oversee management, and protect the interest of the shareholders and align them with company’s goals and interests; such interests include stability and growth. The meetings normally take place several times a year to review proxy, financial statements, overview company’s performance, and vote on important strategies. However, the Chairman doesn’t play an active role in everyday management. The chairman will usually: †¢ Ensure effective operation of the Board and committees †¢ Ensure effective communication with shareholders †¢ Set agenda focused on strategy, growth, and