ISS Discusses How Governance Practices Show that Independent Board Leadership Matters

The debate over board leadership does not seem to go away especially in the U.S. where market participants have long agreed on the need for greater independence in principle, while largely disagreeing on the measures required to put it into practice. Some feel strongly that an independent Chair is absolutely essential, while others believe that an appropriately empowered independent Lead Director can also provide sufficient independent leadership.

Along the lines of the former, shareholder calls for stripping CEOs of the Chair role tend to arise whenever CEO-led boards fail in their management oversight roles. Tesla Inc. was recently forced to Read more