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Case Study 2.1 Corporate Governance

The document discusses the problems of having an overly active board and the purpose of executive sessions without the CEO present. Some problems of an active board include feudal-baron systems with egomaniacal CEOs who intimidate board members and make extravagant personal demands. CEOs can act like players in a zero-sum game. Executive sessions without the CEO allow for freedom of dissent, avoid intimidation, encourage group thinking focused on realities, and generate better ideas as executives start working instead of flattering or social loafing.

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Shah Nida
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67 views4 pages

Case Study 2.1 Corporate Governance

The document discusses the problems of having an overly active board and the purpose of executive sessions without the CEO present. Some problems of an active board include feudal-baron systems with egomaniacal CEOs who intimidate board members and make extravagant personal demands. CEOs can act like players in a zero-sum game. Executive sessions without the CEO allow for freedom of dissent, avoid intimidation, encourage group thinking focused on realities, and generate better ideas as executives start working instead of flattering or social loafing.

Uploaded by

Shah Nida
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CASE STUDY 2.

1 CORPORATE GOVERNANCE

3. What are the problems of having a more active board? Feudal-Baron System Have egomaniac CEOs
Who intimidate and force board members aggressively Make egomaniacal corporate strategies Want Extravagant personal rewards

CEOs are Jocks of Game Theory


Zero-Sum Game

4. What is the purpose of having executive sessions without the CEO being present?

Freedom of dissent Avoid intimidation Allow Group thinking Attention towards realities Generation of better ideas Executives will start working No Flattering and social loafing

THANK YOU

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