Which of the following roles is often separated from the CEO in modern corporate governance practices?

Study for the CFA Sustainable Investing Certificate. Use flashcards and multiple-choice questions; each question provides hints and explanations. Prepare effectively for your exam!

In modern corporate governance practices, the role that is often separated from the CEO is the chairperson. This separation is typically implemented to enhance accountability and checks and balances within the organization. By having an independent chairperson who is distinct from the CEO, companies can provide a clear division of responsibilities. This distinction serves to improve oversight of management activities and align corporate governance with best practices aimed at protecting shareholder interests.

The separation of the chairperson and CEO roles can contribute to better board governance, providing an independent perspective on the company's strategy and performance. When the chairperson is not also the CEO, it helps ensure that the board can operate without conflicts of interest that could arise from a sole individual holding both positions.

In contrast, CFOs, general counsels, and chief operating officers typically do not have their roles as frequently separated from the CEO in accordance with governance practices. These positions often work closely with the CEO to implement corporate strategies and may not have the same level of independent governance oversight as the role of the chairperson.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy