The Changing Role of the Chairman: Impact of Corporate Governance Reform in the UK 1995 - 2005 on Role, Board Composition and Appointment

Abstract

While the corporate governance reforms of the past decade have improved the quality of UK boards - greater professionalism on the part of outside directors, more focus on strategy issues, greater awareness of risk - the role of the chairman has in some respects become more challenging. The chairman who is not also chief executive - and the division of these two roles is now well established in most quoted companies - has to balance and manage two potentially awkward relationships, with the chief executive and with the other non-executive directors. At the same time, he or she has to ensure that the board contains an appropriate mix of skills, personalities and experience, and that it works together as a team.

Parts of this paper appear in: European Business Organization Law Review (EBOR), Vol. 9, No. 2, June 2008).

Keywords: Chairman, Board, UK

JEL Classification: G30, G34, G38, M10