Corporate boards will wield greater influence and independence in the next five years, taking greater control of CEO oversight and board organization, according to a study conducted by Korn/Ferry International, New York, an executive search firm. Included in the survey were 1,020 directors including 237 CEOs, 256 inside directors, and 527 outside directors.
According to Richard Ferry, chairman of the company, the survey found that formal CEO performance reviews by the board will grow rapidly and be well-established at most companies by 2003; board performance reviews will increase, but more slowly than CEO reviews; and retiring CEOs will be required to leave the board.
The survey also found that CEOs and directors will be required to own a specific dollar amount of company stock, regular meetings of independent directors without the CEO present will be held by nearly all companies, and committee chairs and members will be appointed by the board -- not the CEO.
