July 21, 2017 | By Dave Bobker | posted in Corporate Governance
The Corporate Governance Intelligence Council recently partnered with Simpson, Thacher & Bartlett to look at the correlation of CEO/Chair structure and company performance.
There has been commentary on this topic in recent years indicating that companies with a separate CEO and Chair have outperformed peers with combined roles. Although there may be other motivations and rationale for separating the roles in the eyes of investors, this research proves that performance is not, as we suspected, impacted by this corporate governance structure. There is, therefore, no compelling economic reason for a public company to adopt any particular CEO/Chair structure.