4. THE COMPLEX CEO-CHAIRMAN RELATIONSHIP
A good Chairman was appreciated as a real asset by every interviewee that had one. However the relationship is complex. In extremis in NewCo the CEO hires and fires the Chairman in ListedCo the opposite. The Chairman is in theory neutral but in earlier-stage Cos this is not the case due to power/control lying with the founder(s). However day-to-day folks try and avoid hiring/firing (very distracting and time-consuming) and there are many interests to be balanced.
Along the growth curve at some point the Board reaches a tipping point beyond which the CEO becomes ever-more of an employee of his creation. Some founders forestall this eventuality but at the expense of their shareholders. In 13 slides we dive into this topic and focus on some key aspects of recruiting a great Chairman.
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