Being a CEO of One Company and Be on The Board of Another ?

confusedhuh on 09/01/2018 - 13:03

Curious if anyone is in this field and can explain this to me – how can you a CEO of one company and be on the board of another? To me it sounds weird as you can copy paste strategies you hear at your board meeting and use in your own company.

For instance Tim cook the apple CEO is on the board of Nike – Nike made a fitness band ages ago, and now they have stopped it since apple watch launched ?

Eric S was on the board of apple when he was the CEO of google ?

Even if they are not directly competing, in today’s world a company can decide to go into a totally different market any day. Wouldn't you then being on the board be a threat?

Financial

Comments

  • AlienC on 09/01/2018 - 13:22
    +1

    A lot of companies are actually a lot more intertwined than it looks and if it benefits both companies somehow well then I don't see them complaining.. there isn't any legal issues around it afaik but don't quote me on that I have very little knowledge when it comes to the law.

  • holdenmg on 09/01/2018 - 13:31

    Read: Nike FuelBand: The rise and fall of the wearable that started it all
    https://www.wareable.com/nike/not-so-happy-birthday-nike-fue…

  • [Deactivated] on 09/01/2018 - 14:01
    +2

    It is perfectly normal, although somewhat unusual if they are direct competitors.

  • poboy on 09/01/2018 - 18:38

    If you have executive in your title, you are responsible for the day to day running of the company.

    If you are in the board, you may meet monthly and provide oversight. Still a lot of work and accountability, but it's quite high level rather than execution.

    Anyways, it's up to the board to conduct their due diligence. They are answerable and want their performance bonus.

    • confusedhuh on 09/01/2018 - 19:22

      Agree to a point, but I was thinking more in terms of core strategies. If Google CEO came to know 3 years back that apple was working on a watch and how they plan to integrate it with My health - doesn't that impact Googles strategy (I know Eric S left the board before that but just for the sake of argument)

    • [Deactivated] on 09/01/2018 - 22:59

      Unless you are an Executive Producer, they you're the one that ponies up the cash but don't actually work on the movie.

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