- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
When the chairperson and chief executive officer experience long co-tenure working together building knowledge and understanding, strategizing, and developing company-specific resources there can be significant organization performance gains. However the broader board context, especially the insider ratio – the number of executive directors as a proportion of the total number of directors – provides clues as to whether an organization is in a less productive configuration. In this study data from 102 Australian Stock Exchange listed companies is gathered on corporate governance configurations and organization performance. Australia is an interesting setting because the chairperson and chief executive officer roles are generally separated, in contrast to the United States. Results show that organizations with long co-tenure benefit from having a lower insider ratio. Implications are discussed including how the chairperson and chief executive officer working with a large number of inside directors can become “too comfortable in the saddle” negatively impacting performance.
5. Discussion and conclusion
5.1. Theoretical implications Theory development on governance and tenure is often based on the United States governance configurations. In these studies there are most frequently limited to zero differences in tenure between the chair and CEO because of the wide practice of duality. In Anglo legal jurisdictions including Australia and the United Kingdom there is much wider practice of separation with the appointment of a different person to the chair and the CEO roles respectively (Kiel & Nicholson, 2003a). This study shows that new governance insights emerge from studying non-United States governance configurations, in this case the Australian configuration has important theoretical and practical implications for chair, CEO and inside director research. This study unpacks the complex relationship between the chair, the CEO and inside directors in an environment of separation and shows how these people working together can deliver better organization performance.