INSTITUTIONAL EYE How prepared are boards for the separation of chair and managing director? 28 Dec, 2021

SEBI postponed the separation of the Chair and the CEO role by two years to give Corporate India time to prepare for this separation. Implementing this regulation is also forcing companies to think about succession planning, which is needed given that family ownership dominates corporate India.

Even so, the regulation may have unintended consequences of lowering the number of independent directors on boards as they allow companies with independent chairs to have a third of their board comprise independent directors.

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  • Tags:
  • Regulations
  • CEO
  • Managing Directors
  • Chairman
  • Separation

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