Posted: March 11th, 2023

About the Board, CEO, ‘Upper Echelon’

1) What if there is an “Interlocking Board of Directors”? (Mizruchi, 8/1996). This entity refers to the practice of members of a “corporate board of directors” that serve on other “corporate boards of directors” for multiple corporations at the same time, e.g., a board member on McDonald’s board “interlocks” (or serves) as board member of Burger King’s board. Could this be? What’s wrong with this picture? Why? Why not?

2) What regulations exist that govern this area of corporate governance? Also, “which” board (of the 2 or more boards that he/she is on) “means” more to that member? Or, maybe, which board will benefit the member most?

3) What is the “collective” interest of the board members’ view towards success of the corporation? Isn’t that superseded by each board member’s “individualistic” interest? Are both equally important? Could that be?

4) Does culture matter? And, which culture matters: 1) “national” or “individualistic” culture, or, 2) his/her “organizational” culture? Are both cultures the same? “Google-around a bit”!!

5) Also, any thoughts on the following interesting post by a former student of mine: “The problem of “Chairman of the Board-CEO” duality is no one is willing to challenge his (her) decisions on an everyday basis” (Anthony Annunziata, 3/16/2012). So, what are the problem(s) with the CEO being Chairman of the Board too? Are there any benefits? And, finally, what do you think of Jamie Dimon, who is currently Chairman, President, and CEO of JP Morgan Chase?