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Purpose

Looks at the current structure of boards where the CEO fills all leadership roles. Benefit is in having a single voice. Disadvantage is having CEO self‐monitor.

Findings

A lead independent director (LID) can crate an effective system of corporate governance. The LID is chosen form among the ranks of outside board members and serves as a liaison between corporate management and the outside board members.

Practical implications

Provides managers with information on the benefits of creating a LID position.

Originality/value

Of particular value to CEOs and other board members and outside recruiters of board members.

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