Question

In: Operations Management

What value do outside, Independent Directors bring to the CEO and C-Suite?

What value do outside, Independent Directors bring to the CEO and C-Suite?

Solutions

Expert Solution

The inclusion or addition of an outside independent director to the board of a company makes it easier for the board to manage the CEO. For the CEO, the independent director would bring in different degrees of competency that the firm might not be known for and one that can also be developed into its structure. This, when looked at from a worldview perspective, makes the structure and execution more robots and is relevant for any expansion plans the company has for the future. External directors would not have a vested interest in the company and therefore, they can provide rational viewpoints and arguments, so that they can provide a strategic outlook for achieving the maximal competitive position in the market. It provides a formal approach to decision making, making the board’s internal environment more professional and consistent and therefore, increases the stability and credibility with the external stakeholders.


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