“UK Makes Its Mark On CEO Role”
In the May 17, 2010 issue of the Financial Times, Booz & Company Senior Partner Per-Ola Karlsson (Europe) said that the UK model of splitting the roles of chairman and chief executive is “considered good now”—a new trend indicative of “the globalization of governance.” Karlsson was addressing the findings of Booz & Company’s 10th-annual study of CEO succession and governance, “CEO Succession 2000-2009: A Decade of Convergence and Compression.” The report, co-authored by Karlsson, analyzed some 3,719 succession events at the world’s largest companies during the last 10 years, and found that boards, regardless of country or sector, are converging on the same preferences for hiring insiders and splitting the CEO/Chairman roles. Also, the study found that CEOs were being asked to deliver results in a shorter period of time, according to the survey results. Added Senior Partner Gary Neilson (North America), another study co-author: “The role has really changed; if you are a chief executive, you now have a boss to worry about.”