The President and the Board of Directors: A Head-On Collision

by Ram Charan



This article presents a situation in which the board of directors of the Pacific Chemical Company (PCC) must reevaluate its relationship to PCC president James Lind. Lind has dispensed with formalities in requesting the resignation of PCC's influential vice president, and the board must decide whether it should allow such action to be taken without its traditional prior consent. In assessing this situation, the board must consider such issues as ethics, legality, tradition, future performance, and justice. The comments and analyses of three experts in the field of board of directors are presented. These experts are: John Barr, Dean Emeritus of the Northwestern University Graduate School of Management; Daniel T. Carroll, Director and President of Gould Inc.; and Donald S. Perkins, Chairman of the Board of Jewel Companies Inc.

California Management Review

Berkeley-Haas's Premier Management Journal

Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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