Faculty News | | 25
Apple Should Explain Jobs's New Role, Governance Experts Say
Re: Jay W. Lorsch
Moving former CEOs to chairman positions isn't recommended corporate governance, Lorsch said. A lack of clear boundaries can confuse directors and investors as to who is actually running the company, he said. "If the prior CEO stays on as chairman, particularly if he's the founder, he tends to overshadow the CEO," said Lorsch. "He makes it very difficult for the CEO to set a new course.