Chairman and CEO have two distinct roles though some may overlap.
Often in India CEO’s also act as Chairman and their roles get merged.
Following are the risks associated in merged roles
- A loss in checks and balances may take place.
- A decrease in vigilance in the operation of the coorporation can also take place.
- Power may begin to center in one leader that can be used for personal gain at the expense of the other stakeholders of the coorporation.
- Environment of greed may be created.
- Corruption can also take place eventually creating mistrust in the viability of the stock of the coorporation as well as loss of personnel that can right the course
For details on the Role of the Chairman and the Role of CEO, you can read the document below