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Economic Indicators & Forecasting Topics
CEO-Board Chair Separation: If It Ain’t Broke, Don’t Fix It

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Companies have not considered company performance when choosing to separate their leadership roles, which, given the dire consequences possible, is probably a strategic mistake. Boards should be wary of separating their CEO and board chair roles without assessing their own company performance and needs. If the board feels that the company’s performance necessitates a change in leadership, we suggest that the directors consider a demotion separation, since it is the only type of separation with a demonstrable effect on performance.

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