One area of divergence is the greater
amount of constraint on the exercise of CEO
power in the UK vs the US. Ninety per cent of
the UK’s largest companies follow a dual strategic
leadership pattern (Higgs, 2003), splitting
the roles of the CEO and the Chairman of
the Board, as suggested by the Cadbury Committee
in 1992 (Cadbury, 1992) and as now
incorporated into the Combined Code on Corporate
Governance (2003). Principle A.2 of the
Combined Code of 2003 states that “[t]here
should be a clear division of responsibilities at
the head of the company between the running
of the board and the executive responsibility
for the running of the company’s business.