Read the mini-case “The Imperial CEO, JP Morgan Chase’s Jamie Dimon” on P.335 in the text. Answer the following questions in a single Word document.

1. What is CEO duality? What potential problems does it have on a firm’s corporate governance? (5 points)
2. Evaluate the governance systems of JP Morgan Chase. How well does it protect shareholders’ interests? (5 points)
3. 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

Answer preview

CEO duality is a situation in which an individual performs the position of both the CEO and the chair of the board of directors (Hitt, Ireland, & Hoskisson, 2017). The CEO duality has some potential problems on a firm’s corporate governance, for instance, there can be difficulties in the performance of the top level managers as the board actively monitors their decisions and actions. Also, CEO duality is associated with poor performance and this will arise as a result of poor governance when a person serves as both the CEO and Chair. CEO duality can also bring about problems in running the company especially when there are conflicting interests, in some cases, investors and the CEO may not have the same goals or interests…

(500 words)