A Spencer Stuart survey of nearly 200 directors and 30 CEOs of S&P 500 companies zeroed in on where trust is built — and where it’s lost.
August 23, 2024
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What distinguishes an effective CEO-board chair relationship? According to a Spencer Stuart survey of nearly 200 directors and 30 CEOs of S&P 500 companies, trust is the most critical factor. Chairs and CEOs build trust over time by being vulnerable, open, and transparent about their expectations and challenges — particularly in five moments: 1) when negotiating CEO compensation; 2) during the annual CEO evaluation; 3) when giving feedback from executive sessions of the board; 4) when boards consider their own composition and succession; and 5) in moments of adversity.
Over the past decade, a growing number of U.S. boards have followed their European counterparts by separating the chair and CEO roles. Today, almost 60% of S&P 500 companies have done so, with 39% appointing an independent board chair, which we define as a director meeting applicable NYSE or Nasdaq rules for independence.
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George Anderson leads Spencer Stuart’s Board Effectiveness practice, helping boards and CEOs perform at their highest level.
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James M. Citrin is a bestselling author of multiple books on leadership. At Spencer Stuart, he advises boards and CEOs across industries on how to successfully navigate high-stakes leadership decisions, including CEO succession, transitions, and performance.
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Cassandra Frangos, Ed.D, is an expert in CEO succession and executive development at Spencer Stuart, partnering with boards and CEOs to assess and develop potential successors and unleash top team performance.
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Zachary Morfín, PhD, advises Spencer Stuart clients in the corporate and non-profit sectors in the areas of board effectiveness, CEO succession, and leadership development.
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