FCA To Merge With PSA

RobertRyan wrote:

In this scenario, FCA actually have more leverage because they have more board representation with the 11 member being John Elkann from FCA as chairman of the board. The board can hire or fire a CEO while the CEO cannot touch a board member. The board can also override the CEO if they have enough votes to do so. So FCA will have 6 votes on the board to PSA's 5. The CEO is from PSA who does not have a vote which means FCA can out vote PSA on anything they wish to. So saying that PSA will dominate the company is highly unlikely unless PSA gets one of the FCA board meers to vote against FCA.

No they do not have more leverage in a merged company. Carlos Tavares will be the CEO, not John Elkhann, the board will make recommendations but he can veto them as the CEO

That is not how it works. The CEO cannot override the board of directors. Board members are elected by shareholders(owners of the corp) to act on behalf of the shareholders. They are essentially the boss of the CEO and the rest of the senior executives dictating their employment and compensation. The only way a CEO can be fired is by the board. The only time a CEO has any say in this matter is if he is chairman of the board, which is not the case in this situation, or if he has enough shares.

Board of Directors (B of D)