Oh, those poor CEOs!
Ever wonder what your competitor is thinking?
Fortunately, Chief Executive lays it out for shareholder rights activists. In the magazine’s November/December issue, true feelings are uncovered, with boards categorized as meddling, uninformed, self-indulgent… perhaps we should let you read this fine excerpt for yourself:
“Boards are not the rubber stamps they once were. They are your new boss. While some boards have their act together and make a huge contribution, in many cases this boss is not yet well organized to carry out its new required accountability and is intrusive. It is going through teething problems of how to work cohesively and yet independently. In many situations boards are taking up an undue amount of the CEO’s time and are focused on non-value-creating items. Some directors delve deep into operational details largely to demonstrate their own expertise. Their micromanaging drains energy. One or two directors can make the life of the board miserable and distract the CEO, for instance, by requesting studies on tangential issues. In other cases, this new boss misses the point and does not permit the CEO to make bold moves, even when the fast pace of change in the external landscape demands making timely strategic bets. Some boards themselves are under attack by the activists and thus get distracted from the meaningful work they need to do.”
And if that doesn’t fully illuminate the magazine’s mindset, the writer continues:
“Now CEOs have to deal with their boards as they face the coming downturn. Most boards have not faced such a storm, especially when the liquidity flow is frozen. It remains to be seen how well they will set targets and how they will award CEOs in a tougher environment where earnings and margins are likely to be revised downward.”
Oh, those poor CEOs. They may not receive proper awards when their businesses fail. Can you imagine anything worse!?
