Economics · Corporate Governance Principles
An audit assistant highlights major corporate governance deficiencies regarding a company's board composition—specifically that the same individual holds the roles of both Chief Executive Officer (CEO) and Board Chair. According to standard corporate governance codes, which action is most appropriate to resolve this non-compliance?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Implement a formal evaluation of directors' performance only once every two years.
- 2Create a remuneration committee composed of executive directors to oversee new appointments.
- 3Ensure that the roles of Chief Executive Officer and Board Chair are split and held by separate individuals.✓
- 4Appoint an external consultant to review the existing policies.
Correct answer
Ensure that the roles of Chief Executive Officer and Board Chair are split and held by separate individuals.
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