Building the complementary board. The work of the plc chairman

This article addresses the critical issue of board effectiveness, and in particular the conditions under which chairmen as well as other non-executives can make an effective and positive contribution to the strategic direction and control of companies. It is informed by qualitative interview-based research with chairmen, chief executives and non-executive directors in major UK companies which focused on the now typically separate role and work of the company chairman. The article argues that in the governance debate too much attention has been given to issues of board structure and composition to the neglect of issues related to the knowledge and motives of individual non-executives, and how their energies are combined in processes of board accountability. Drawing upon directors' experiences, the article examines the bases that underpin and the positive potential of what are termed 'complementary' board relationships, through which a chairman can contribute directly to the performance of the chief executive, as well as create the conditions for other non-executives to contribute to the performance of the executive team. The article also explores the negative dynamics of what are termed 'complimentary' relationships between executives and non-executive directors and how these sometimes inadvertently come to weaken board accountability and create the conditions for an external crisis of confidence. (C) 2002 Elsevier Science Ltd. All rights reserved.