The Elephant in the Room – Ibi Eso Contributes to ICSA
This month our founder, Ibi Eso, has written a thought-provoking article for the ICSA – The Chartered Governance Institute. Below, you’ll find a brief excerpt of her article.
To read the piece in full, please visit: https://www.icsa.org.uk/knowledge/governance-and-compliance/features/the-elephant-in-the-room
Has the chief executive officer role been given enough attention in governance codes?
Let’s talk about the elephant in the room, staring you in the eyes and ready to use its trunk to douse you with water. I’m not referring to the large, grey mammal that never forgets here but the all-powerful, all-knowing chief executive officer because, personally, I do not think enough attention has been devoted to this role in governance codes.
According to the UK Corporate Governance Code, “The chair leads the board and is responsible for its overall effectiveness in directing the company”. The CEO, as the leader of the executive directors, is usually the person closest to the business and responsible for formulating the strategy and direction for the organisation. This is then articulated to the board, for board members to challenge, critique or agree. However, a domineering CEO can have undue influence on the chair, the board, the other executives and, in some instances, may never be held to account. Below are some of the issues I feel should be talked about in relation to the CEO.