At the heart of the Board: CEO and Chair. Processes, practices and relationships

Abstract

This doctoral dissertation explores leadership in the dyadic relationship of the Chief Executive Officer (CEO) and the Chair of the Board, and in the process leading to CEO dismissal. The study contributes to the literature on relational leadership and the human side of corporate governance and Board work by increasing understanding of the relational practices and processes of the CEO and Chair. A theoretical model is developed of the construction of the CEO-Chair relationship. Additionally, the study makes a methodological contribution by examining researcher-practitioner collaboration during the writing of this study. A qualitative research approach was adopted in the study, with open-ended, in-depth interviews with CEOs and Chairpersons in Finnish limited liability companies as primary data. The thesis consists of this introductory essay as well as three journal articles and a book chapter, all based on empirical studies. The main argument of this study is that the dyadic practices and devel-opment of trust in the CEO-Chair relationship are closely intertwined, and that the dynamic around them is delicate, self-reinforcing and context-embedded, particularly in the early stages of the relationship. Due to the information asymmetry which works in favour of the CEO, her/his initiative to interact with the Chair is proposed to be the ‘engine’ of an effective CEO-Chair relationship and pivotal for trust to develop. The results of this study also increase under-standing of the importance of social dynamics and the actions of the Chair in the process of CEO dismissal. In addition, it is proposed that a collaborative research approach between academic research and practice may provide valu-able pathways to enhancing our understanding of the human side of corporate governance and Board work.