A powerful chief executive officer (CEO) can be a great asset or a substantial liability for a company. The benefits include having a single person who is accountable for a company’s success or failure, who oversees a clear line of authority and who can initiate fast strategic responses to changing business conditions. This management principle is known as ‘unity of command’. However, there are risks associated with powerful CEOs. These individuals can exploit their power, behaving opportunistically or dishonestly.
Corporate Governance, CEO Power, Board Oversight, Sarbanes-Oxley, Governance Mechanism
Investors, directors, top managers