This is one of the reasons why CEO's of companies should not move up be Chairman of the same company. They rarely let go and that means that there really is no change at all.
These two positions are different requiring different focus and should not be mixed up. And the Chairman's position should not be use as a ruse for the CEO to stay around for a few years longer.
The farce at Volkswagen shows this part of the problem as well.
Onésimo Alvarez-Moro
See article:
Deeply conflicted chairman forces the appointment of former union official as personnel chief against the wishes of his chief executive, prompting shareholder disgust and a board departure. Yes, it can only be Volkswagen, where the words “governance” and “farce” have become synonymous.
The cosy German solution of Porsche’s 18.6 per cent shareholding in VW is bad enough. But the backing by Ferdinand Piëch, VW’s chairman and one of Porsche’s controlling shareholders, of Horst Neumann, as labour director, undermines Bernd Pischetsrieder, chief executive, and could limit VW’s ability to accelerate restructuring. It does not bode well for future governance either that Mr Piëch plans to install two Porsche executives on VW’s board.
See full Article.
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