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Should A Bank’s CEO also be the Chairman of the Board?

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One of the more contentious issues in corporate governance, particularly as it relates to the stability of financial institutions, is whether a company’s CEO should also be the Chairman of the Board of the company.   In the case of Goldman Sachs, the union American Federation of State, County and Municipal Employees (Afscme) felt it was needed to separate those two positions.

First, in my humble opinion, this is ultimately an issue for shareholders to decide upon, at least for non-financial companies that don’t receive taxpayer bailouts (let’s set aside the autos).  If shareholders believe separating the two enhances value, then as long as...

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