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A royal future?

Jan 20, 2020
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Marketplace

More and more companies are separating the role of CEO and chairman. Why?

Bennett Purser Nov 25, 2019
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Boeing CEO Dennis Muilenburg stepped down as chairman after fatal crashes of Boeing jets. He stayed on as CEO to address the company crisis. Jim Young-Pool/Getty Images

More and more companies are separating the role of CEO and chairman. Why?

Bennett Purser Nov 25, 2019
Boeing CEO Dennis Muilenburg stepped down as chairman after fatal crashes of Boeing jets. He stayed on as CEO to address the company crisis. Jim Young-Pool/Getty Images
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The chief executive officer of a company runs the operations and sales and marketing and everything that the company needs. The chairman of the board runs the company’s management, making sure they’re working hard for the company.

Historically, one person has had both jobs. But that’s changed — especially for companies in crisis. Today, more than 50% of S&P 500 companies have split the roles. Companies facing crises (take, recently, Boeing and WeWork) will hire a separate chairman in a bid to let the CEO focus on recovery.

Wall Street Journal reporter Thomas Gryta spoke with “Marketplace” host Kai Ryssdal about his article on the trend and why it matters.

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