From WSJ:
In order to properly oversee these companies, boards need to believe that the CEO -- who's often their main source of information -- is giving them an accurate picture. "In the past, CEOs had carte blanche to do what they needed to do to run the company," says Dirk Hobgood, a governance and risk-management consultant, and chief financial officer, at consulting and executive-search firm Accretive Solutions, based in Hauppauge, N.Y. "Today's CEO really has to work effectively as a team member with the board and keep them up-to-date, and keep the players involved."
....
Why is it so tough for CEOs to keep the board informed in a timely manner? Simply enough, CEOs want to appear to be in control, experts say. It can be hard for them to concede defeat or to admit they don't have all the answers.
"I think sometimes CEOs struggle with the question of when to share bad news largely because they want to bring solutions, not problems, to the board," says Mr. Copeland, the former Deloitte & Touche CEO. "They want to be able to say, 'We have this problem, and here's what we're going to do about it.' "
No comments:
Post a Comment