The pressure to separate the CEO role from the chairman role centers on good governance. Although it is standard practice to distinguish the two in other industrialized nations, American CEOs often view the chairman title as a coveted prize, according to Fortune magazine's "CEO Daily" series.
Why does it matter? According to Fortune, boards of directors need strong leadership. During a time of heightened public concern over accountability in big corporations, separating the two roles helps show stakeholders and consumers the organization takes accountability seriously.
About half of CEOs at large U.S. companies hold both titles, compared with two-thirds of CEOs a decade ago, according to the report.