Independent Board Leaders: Roles and Responsibilities
Date:
January 1 2003
With public outcry over corporate abuse running high in the wake of Enron and other highly publicized business failures, proposals to reform corporate governance procedures abound. One concept that has recently found favour with some stakeholders and policymakers is that of an “independent board leader”. A recent survey of American corporate directors by the global management consulting firm McKinsey & Company found that almost 70 per cent of those surveyed thought companies would function better with an independent board leader (full details of the survey are available at www.mckinsey.com). However, the same McKinsey survey revealed that directors are uneasy about liability: 25 per cent of the directors surveyed had turned down an offer to serve on a board or resigned a directorship in the last year due to liability concerns.
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