Who’s the Boss?

During my school days, there was this sitcom called Who’s the Boss starring Tony Danza and Allysa Milano. When I was in university, I learned who the real boss is - the Board of Directors, because they represent of the owners of a business. The CEO on the other hand, is an employee;* recommended and appointed by the Board, reports to the Board and can be sacked by the Board.

But today’s news in the Star newspaper (Tuesday, 18 August 2009) says differently. It seems that the President/CEO of a Government Linked Bank can make statements recommending/suggesting how many directors the Bank should have. The President/CEO went on to say the Bank which currently has eight board members, would ideally require 11 or 12 directors for the Bank to operate more efficiently. Ok, this may only be his personal opinion but being quoted by the press as saying that gives the impression that he, the President/CEO is above the board.

Personally, I think he went over board.

*unless the CEO is also a shareholder, which is not uncommon.