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Home Leadership

Companies should do away with having an executive chairman

by Yurie Miyazawa
in Leadership
Companies should do away with having an executive chairman
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The individual might get too involved in the group’s operations, and the staff could be torn between potentially competing centres of power

AMID an uncertain economic backdrop, many companies are looking to pare costs. Perhaps, cost savings can be found at the board level, say by cutting director fees or doing away with paying fees for attending meetings.

Could listed companies which are led by an executive chairman trim costs by making the role non-executive? A non-executive chairman is typically paid much less than an executive one, which would benefit the company and its shareholders.

Several leading local-listed companies are led by a non-executive chairman. These include DBS, OCBC, UOB, Singtel, Singapore Airlines, Keppel, ST Engineering and Singapore Exchange.

Copyright SPH Media. All rights reserved.

Tags: ChairmanCompaniesExecutive
Yurie Miyazawa

Yurie Miyazawa

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