The Rx For Ceo Disease: An Alert Board

There are plenty of chief executive officers who perform admirably. Unfortunately, another big group of CEOs doesn't measure up to the demands of the job--often with disastrous consequences. In these situations, a strong, independent board of directors that includes a number of outside directors must play a central role. In too many cases, directors see clear signs that their chairman is afflicted with CEO Disease, but postpone corrective action until it's too late. The executive responsible for a large company needs to be carefully monitored by the board and frequently reminded of the right priorities. One reason: No one else--certainly not a subordinate--is likely to challenge the CEO.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.