Should the board get rid of CEO duality? Why or why not? What hindered the shareholder activists’ efforts to separate the two positions? (5 points)
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The board should not get rid of the CEO duality. Having one individual as a CEO and a chairman may influence the outcome of the company as the board will have a member or members that have the relevant experience and knowledge will likely help the company to formulate and implement working strategies. Board of directors that is comprised of insiders has access to information that is used to implementing strategies. Boards with insiders are more informed on the reasons for initiatives that are intended and the expected outcomes that will arise from pursuing them. If the shareholders decided to get rid of CEO duality the board will not have an access to the insider information of the company. The shareholders activist’s efforts to separate the two positions were hindered by the lack of a competent and experienced person to take over the position of a chair of the board and if Dimon gives up one of his roles it will affect the stock price.
