Independent Chairman

Independent Chairman

By
David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), November
2015

This Research Spotlight provides a summary of the academic literature on whether companies with an independent chairman of the board exhibit better governance quality than companies with a dual chairman/CEO. It reviews the evidence of:

  • The relation between independent chair and market value
  • Shareholder reaction to a decision to separate chairman and CEO roles
  • Separation during the succession process
  • Separation to improve oversight
  • The impact of separation on performance

This Research Spotlight expands upon issues introduced in the Quick Guide Board of Directors: Structure and Consequences.