The fundamental role of the CEO is to exercise their business judgment to act in what they reasonably believe to be the best interests of the Company and its shareholders. CEOs should have experience in positions with a high degree of responsibility, be leaders in the companies or institutions with which they are affiliated, and be selected based upon contributions they can make. CEOs are expected to rigorously prepare for, attend, and participate in all Board and applicable Committee meetings.
In this day and time, companies are laying off their employees, cutting back on those items "like IT spending and product development "that might keep them in the black, and letting their investors take a hit. Yet they're handing their CEOs "those people in many ways most responsible for their company's grim destiny "a golden thank you note.
This should not be the case and as far as exit severance and bonuses, I agree with those that consider the CEO's job a failure if the company fails. The company should let the CEO go with no compensation for not doing the job they were hired to do. If the CEO has to take a lesser position in another company, so be it. There are people in lower ranks that constantly have to take a step back if their company either goes under or has layoffs. Treat everyone equally, including the bigwigs.
So, if a CEO is asked by the board of directors to leave a failed company, he (or she) should get nada! Zilch! Lush exit packages for chiefs that did a crappie job make shareholders cry foul!.
