The CEO develops strategy,
the Board approves it.
Well, not quite.
Not any more anyway.
Why? Corporate directors have long had the responsibility of seeking to assure the long-term viability of the companies they serve, specifically to maximize long-term value. While this standard has been in existence for decades, its application is shifting rapidly. Boards are increasingly seeking to understand not only what their companies are doing, but also why those things are being done. And they want to contribute their own ideas.
Contributing Authors: Henry DeNero and Bennett E. McClellan