[[https://en.wikipedia.org/wiki/Corporate_governance|
Corporate governance]]

Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions that appear purpose-specific. Writers concerned with regulatory policy in relation to corporate governance practices often use broader structural descriptions. A broad (meta) definition that encompasses many adopted definitions is "Corporate governance” describes the processes, structures, and mechanisms that influence the control and direction of corporations." 

**Separation of Chief Executive Officer and Chairman of the Board roles**

Shareholders elect a board of directors, who in turn hire a chief executive officer (CEO) to lead management. The primary responsibility of the board relates to the selection and retention of the CEO. However, in many U.S. corporations the CEO and chairman of the board roles are held by the same person. This creates an inherent conflict of interest between management and the board.

Critics of combined roles argue the two roles that should be separated to avoid the conflict of interest and more easily enable a poorly performing CEO to be replaced. Warren Buffett wrote in 2014: "In my service on the boards of nineteen public companies, however, I've seen how hard it is to replace a mediocre CEO if that person is also Chairman. (The deed usually gets done, but almost always very late.)"


Sub topics 

    Agency cost
    Basel II
    Co-determination
        Worker representation on corporate boards of directors
    Corporate Law Economic Reform Program Act 2004
    Corporate social entrepreneurship
    Corporate transparency
    Creative accounting
    Earnings management
    Environmental, social and corporate governance
    Fund governance
    Golden parachute
    International Organization of Supreme Audit Institutions
    King Report on Corporate Governance
    Legal origins theory
    Market socialism
    Outrage constraint
    Private benefits of control
    Risk management
    Social ownership
    Sociocracy
    Stakeholder theory