whachel1976 发表于 2012-5-14 09:56 
According to Agent Theory, there are many papers arguing how to unite the interests of managers and ...
Agent Theory, in its origin keeps an eye between the effort exercised by a worker and the wage offered by the employee to elicit such an effort. A CEO, though unlikely, can stay in his office, flirting with some blondes when nothing
Depends on what is so called “vital decision”. People may think board members know exactly what the crucial decision for their firms is, but actually they don’t. I heard, and read from researchers, the vital chip in CEO hands is staff decision. Basically, CEO can appoint its CFO, CIO, CTO, without approval of the board (they usually ask such staff authority from the board before taking the offer), and I even heard that CEO make most M&A decision in Manufacture industry. So little by little, not vital yet significant decisions accumulate to the final chip of CEO against the fundamental interest of shareholders. You may wonder why CEO gets so much authority, why the boards refuse to take charge of the whole firm. In modern firms, CEO is valuable asset for its expertise in running so complicated modern firm institution. Multinational firms got a huge balance sheet with intricate operation procedure, culture divergence and governance inability, board members count on the expertise of CEO to arrange for all those mess. In some perspective, the only right of shareholders is the decision to fire or not to fire a CEO.
Another story believes that CEO got influence onto board members. When summoning a conference between board members, the CEO get most inside and crucial information of the firm and other members believe she does. Then CEO may influence the decision of other members, by such advantage.
Finally, I have to say Liam McGee departs BOA, just because he did a really sucking job, and no more reasons.