Bernie Marcus, Co-Founder of The Home Depot, discusses the importance of the CEO’s role. Bernie states that having a bad CEO has the same effect on a company as having a bad President of the United States.
Bernie then explained that having investors who had all run companies made for a wonderful board. It allowed all of the members to be participants rather than just listening to the CEO’s presentation. All of the board members were assigned to visit the stores unidentified as customers and return with a written report which they would later discuss with the store managers.
Bernie talks about his time on the board of the New York Stock Exchange when the idea of independent board members was conceived, which he continues to disagree with. He talks about seeing boards in which no one has any clue what the business is really like. They are educated but lack knowledge of the business.
Bernie Marcus continues on to say that he has had CEOs pleading with him to recommend someone on their board who could help them. Bernie says this country needs to have courageous people who are thinking about what is going to be good for America, not just their personal interests. CEOs need to think about things that effect business and what your kids are going to be left with. CEOs and business people need to get together and voice their concerns and issues.
View the entire interview with Bernie Marcus of the Home Depot on this week’s CEO TV Show.