Christina is evaluating Maximum Brands as an investment opportunity. She is very concerned about future financial performance by Maximum Brands. Christina does not believe that the CEO can act as a steward. Christina will probably be most concerned if:

Question

Kingston Donaldson

Business

1 March, 23:15

Christina is evaluating Maximum Brands as an investment opportunity. She is very concerned about future financial performance by Maximum Brands. Christina does not believe that the CEO can act as a steward. Christina will probably be most concerned if:

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Answers (1)

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Bridger Park · Answer 1

There is CEO duality

Explanation:

What is a CEO duality

CEO duality refers to the situation when the CEO also holds the position of the chairman of the board.

The board of directors is basically designed to keep an eye on managers such as the CEO on the behalf of the shareholders. They design compensation contracts and hire and fire CEOs. The benefit of having a dual CEO in the firm is because he or she could work closely with the board to create value.

Christina in this sense is tryinb to bring more value to the firm and in ghe capacity of just the CEO her hands are tied. She probably wants more authority or power to do much more.