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Public corporations are led by Chief Executive Officers (CEO) and other upper-echelon leaders who, in turn report to shareholders and board of directors (BOD). Interestingly, even though the BOD oversees the CEO, decides on the terms of employment and salaries, and monitors the overall performance, the CEO is, more often than not, the person that nominates board members. The justification? The CEO are well placed to know what type of expertise is needed on the board and should have a BOD that will ‘fit’ and work with. The relationship between BOD and CEO is a complex. What are the potential ethical and conflicts of interest issues arising from the CEO’s involvement in the selection of board members?How can these issues be addressed?


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