In response to:

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

Jim88 Wrote: Apr 08, 2012 9:38 AM
I believe the answer to that question is up to the stockholders of the banking institution; but if the bank has accepted a federal bailout the CEO should step down, and a new CEO should be elected by the stockholders of the bank with no federal employee, or appointee being eligible for the job, it should remain internal.

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...

Related Tags: CEO