Sharing the Lead: Examining the Causes and Consequences of Lead Independent Director Appointment
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Publication Date:
August 31, 2017
Many companies now use lead independent directors, yet little is known about when they are selected, who is selected, what impact their selection has on performance, and whether their selection prevents the future separation of the CEO and chair positions. We explore these four questions and largely find that lead independent directors represent a power-sharing compromise between the CEO/chair and the board.
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